Seven directors of Social Islami Bank on Monday resigned while nine new directors were inducted in the board on the same day as the Chittagong-based S Alam Group further tightened grip in the bank.
The latest changes came following the changes in chairman, vice-chairman and executive committee chairman and managing director posts amid the takeover of a significant number of shares of SIBL by companies linked with S Alam Group.
SIBL’s new chairman Anwarul Azim Arif, who represents a company of S Alam Group, in the bank’s board, told reporters seven directors resigned from the bank showing ‘personal reasons’.
Bank sources, however, said that there was a pressure on them to resign following the recent changes in the bank board.
Among the seven directors four were independent directors while the other three directors were shareholders.
The independent directors are Md Abdur Rahman, Abdul Mohit, AFM Asaduzzaman and Muinul Hasan while the three shareholder directors are Hakim Md Yousuf Harun Bhuiyan, Lily Amin and Afia Begum.
Bank sources told New Age that Monday’s board meeting also appointed nine new directors for the bank of whom seven are independent directors and other two are shareholders.
The names of the new directors, however, could not be known on Tuesday.
Earlier in last week of October, bank’s the then-chairman Rezaul Haque, executive committee chairman Anisul Haque and managing director Shahid Hossain resigned from their posts.
They were replaced by former Chittagong University vice-chancellor Anwarul Azim Arif, the then NRB Global Bank vice-chairman Belal Ahmed and First Security Islami Bank additional managing director Quazi Osman Ali, respectively at a closed-door special meeting of the bank held at the Westin Hotel in Dhaka.
The changes in the SIBL board followed major changes in the board of Islami Bank Bangladesh, control of which was also taken by the S Alam Group.
The Group now controls at least nine banks including First Security Islami Bank and Union Bank.
‘If any business group takes control of so many banks, it is not a pleasant matter for the overall banking sector and is also against the good governance in the sector,’ Mirza Azizul Islam, a former adviser to an interim government, earlier told New Age.
The scenario may be the fallout of the recent amendment to the Bank Company Act which has expanded the scope of control in a bank by a family allowing four directors with three consecutive terms from a family in a bank, he said.
‘There will be lack of good governance in the banking sector if such trend continues,’ he said, adding that the interest of depositors might also be hurt as there might be nepotism in loan disbursement and recovery process.
Family members, relatives and friends of the family might get priority in getting loans, he apprehended.
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