A heated debate took place in Parliament on Tuesday over the appointment of the chairman of Islami Bank Bangladesh PLC, with government and opposition lawmakers exchanging sharp accusations over the bank’s ownership, management and future direction.
The discussion was held during the second (budget) session of Parliament under Rule 68, chaired by Speaker Hafiz Uddin Ahmed Bir Bikram. It was initiated by Opposition Leader Dr Shafiqur Rahman, who demanded the return of Islami Bank shares to their legitimate owners and an end to what he described as unjustified interference in the bank’s management.
Dr Shafiqur Rahman alleged that a conspiracy was underway regarding Islami Bank and warned that the government was creating scope for individuals linked to past irregularities, including the S. Alam Group, to regain influence. He said any disruption to the bank could have serious consequences for the country’s economy and banking stability.
He further alleged that the S. Alam Group had used funds from the banking system to acquire control of the institution and had pressured shareholders to relinquish their holdings. He also claimed that the newly appointed chairman had links to controversial activities during the group’s influence over the bank.
Rejecting allegations that Islami Bank’s loans had been used to finance Jamaat-e-Islami activities, the opposition leader challenged the government to produce evidence. He defended the bank’s Rural Development Scheme (RDS), saying it had benefited people across political and religious lines, and warned that concerns among depositors and expatriates could affect remittance flows and overall financial stability.
Deputy Opposition Leader Syed Abdullah Mohammad Taher alleged that after large-scale irregularities attributed to the S. Alam Group during the previous government, the bank had begun recovering, but that the current administration was now appointing individuals with questionable backgrounds instead of recovering diverted funds.
He claimed that the group had used dozens of shell companies to siphon off more than Tk 125,000 crore from the bank. Taher warned that if forcibly acquired shares were not returned and the bank was not run by qualified professionals, millions of customers could launch a movement.
Responding to the allegations, Finance Minister Amir Khasru Mahmud Chowdhury said the government was committed to restoring Islami Bank’s reputation and financial discipline. He noted that the bank was originally established with the support of late President Ziaur Rahman.
The finance minister accused a political group of attempting to destabilise the bank and said the government would not tolerate any conspiracy or disorder surrounding the institution. Rejecting claims of embezzlement, he said there was no evidence supporting such allegations and argued that customers choose banks based on the safety of their deposits rather than the identity of a chairman.
He also questioned earlier profit figures, saying they were the result of “window dressing”. According to him, classified loans had reached Tk 94,000 crore by the end of 2025, accounting for 51 per cent of the bank’s total loan portfolio. He added that deferred provisioning liabilities had increased and the bank recorded a net loss of around Tk 268 crore in early 2026.
Amir Khasru said Bangladesh Bank was following legal procedures to return the bank to its legitimate owners and warned against attempts to obstruct reforms through political agitation.
Home Minister Salahuddin Ahmed said Islami Bank and Jamaat-e-Islami should not be equated with Islam, stressing that religion should not be used as a shield against accountability. He pledged comprehensive investigations into alleged financial misconduct, political appointments and loan irregularities.
The home minister alleged that political influence had affected recruitment, promotions and loan approvals at the bank. He also raised concerns over the RDS, claiming it had been used for political purposes during elections.
He added that Bangladesh Bank has the legal authority to restructure boards and appoint chairpersons to protect depositors’ interests, and defended the newly appointed chairman, saying no allegations against him had been proven.
The parliamentary debate underscored deep political divisions over Islami Bank’s ownership structure, governance and future role in Bangladesh’s banking sector.
