Amid ongoing unrest over the appointment of new Chairman Md. Khurshid Alam, customers have withdrawn approximately Tk 3,770 crore from Islami Bank Bangladesh PLC over the past five working days.
According to bank officials, deposit withdrawals have accelerated due to uncertainty surrounding the chairman's appointment.
Officials said around Tk 2,570 crore was withdrawn during the four working days between June 1 and June 4. In addition, preliminary data indicate that more than Tk 1,200 crore was withdrawn between June 7 and 2:00 pm on June 8.
On May 24, former Bangladesh Bank Deputy Governor Md. Khurshid Alam was appointed Chairman of Islami Bank. Following the announcement, customers and bank officials staged protests in front of the bank's head office against his assumption of office. Amid the unrest, the bank's first board meeting under the new arrangement was held virtually. At the same time, Chairman Jobaidur Rahman resigned, and his resignation was accepted.
The bank's Additional Managing Director and Acting Managing Director, Altaf Hossain, said that while some customers were withdrawing deposits, there was no reason for concern. He added that all activities, including loan approvals, were being conducted under strict scrutiny.
Bangladesh Bank Assistant Spokesperson Mohammad Shahriar Siddiqui said the central bank was closely monitoring the situation at Islami Bank. It is also monitoring whether customers are withdrawing cash or transferring funds to other banks. He added that Bangladesh Bank would provide liquidity support if necessary.
Following the board reconstitution in August 2024, Islami Bank's deposits rose significantly, reaching Tk 183,000 crore in 2025. However, the withdrawal of about Tk 3,770 crore within days of the new chairman taking office has emerged as a fresh challenge for the bank.
Meanwhile, protests by bank officials and customers demanding the cancellation of the chairman's appointment continue. Demonstrators have announced nationwide programmes and called for Khurshid Alam's resignation.
Bangladesh Bank officials said the overall situation is being monitored closely and that necessary measures will be taken if required. At the same time, concerns have grown over a broader confidence crisis in the banking sector, as more people are reportedly keeping cash outside the banking system.
