Depositors’ Fury Mounts as Islami Bank Runs Without Full Board

Frustration among depositors of Islami Bank Bangladesh is mounting as the country’s largest Sharia based bank has been operating without a full board of directors for more than two months, fuelling fears over governance, accountability and the security of their savings.

Angry depositors and shareholders took to the streets on Monday, demanding that the government and Bangladesh Bank urgently restore a full, independent and professional board to ensure the bank is properly governed and customers’ deposits are protected.

The Islami Bank Sachetana Grahak Forum (Conscious Customers’ Forum) staged a protest rally outside the bank’s head office in Dilkusha, Dhaka, where depositors voiced growing frustration over what they described as prolonged inaction by the authorities.

“A bank cannot function properly without a proper board,” said Professor Nur Nabi Manik, convener of the forum, who presided over the rally.
He demanded the immediate appointment of honest, qualified, experienced and professional directors, saying prolonged uncertainty was eroding customer confidence in the bank.

The protest, moderated by forum member secretary Motasim Billah, brought together depositors and shareholders who expressed concern that the absence of a full board was leaving the bank without effective oversight at a time when confidence in the banking sector is already fragile.

Forum leaders said Islami Bank was not the personal property of any individual, group or family but a national financial institution holding the savings and trust of millions of customers.

They called on Bangladesh Bank and the government to put depositors’ interests above ownership disputes and take immediate steps to ensure the safety of their funds.

The forum accused Bangladesh Bank of failing to take meaningful action over the past two months to restore confidence. Leaders said customers had been left increasingly frustrated while authorities had allegedly focused on questioning the motives behind their protests rather than addressing their concerns.

The protestors also raised allegations about legal proceedings surrounding the bank’s ownership. Professor Manik alleged that individuals linked to the S Alam Group were influencing judicial proceedings concerning the bank.

He claimed that when a lawsuit filed by Islami Bank was approaching a final resolution, the bank’s legal counsel, Barrister Qaiyum, was replaced by a junior lawyer. He also alleged that Bangladesh Bank’s counsel was changed under similar circumstances.
The allegations could not be independently verified.

Manik alleged that the changes were intended to influence the case in favour of the S Alam Group and warned that depositors would not accept what he described as a “mock judgment” delivered in the name of justice.

The forum placed a seven-point demand charter, with depositor protection at the heart of its demands.

It called for the immediate formation of a full, independent and professional board, restoration of ownership to the bank’s “original and legitimate owners” who held it before the 2017 ownership change, and the establishment of a special tribunal to prosecute those accused of looting banks.

The forum also demanded the recovery and repatriation of allegedly laundered money held abroad to meet the bank’s liabilities and the confiscation of assets belonging to S Alam and other alleged bank looters to help repay the bank’s debts.

It called for measures to restore stability in the banking sector, curb what it described as misinformation against Islami Bank on social media, and withdraw opportunities to rehabilitate financial delinquents.

The forum further demanded the retraction of allegedly false and misleading statements previously made about Islami Bank in Parliament.
For depositors, however, the immediate concern is clear: who is ultimately responsible for protecting their money while the bank remains without a full board?

The prolonged governance vacuum has deepened anxiety among customers already facing uncertainty over the health of Bangladesh’s banking sector.

The former chairman and board of directors of Islami Bank were dissolved following intense criticism and customer protests. The bank has been operating without a full board since June 15.

Mohammad Zahir Hossain, Executive Director (current charge) of Bangladesh Bank, is currently serving as acting chairman and overseeing the bank’s administrative and operational affairs.

The forum warned that unless its demands are addressed promptly, depositors will intensify their protests, including through a mass rally.

For the bank’s customers, the growing anger is no longer simply about boardroom control. It is about confidence, accountability and the protection of the savings entrusted to one of Bangladesh’s most prominent banking institutions.