The board of directors of Islami Bank Bangladesh Limited (IBBL) removed Syed Ahsanul Alam from the “meaningless” post of vice-chairman on Tuesday, amid top-level claims he had spread negative propaganda about the bank.
The decision was made at a board meeting immediately after the 34th Annual General Meeting (AGM) of the bank held at Kurmitola Golf Club in Dhaka.
Following the meeting, IBBL Chairman Arastoo Khan informed a host of reporters about the board’s decision to remove Ahsanul Alam from the vice-chairman post.
“From now on, there will be one vice-chairman in IBBL, as having two vice-chairmen is meaningless,” the chairman said.
“Following the shareholders’ demand, the board has decided to keep one vice-president and he is Yusif Abdullah Al-Rajhi.”
Arastoo added that while the post of vice-chairman has been abolished, Ahsanul will remain on the board as an independent director.
Tuesday’s move came less than a week after the IBBL chairman claimed Ahsanul had violated his oath of office by spreading negative propaganda about the bank.
Ahsanul did not attend on Tuesday’s AGM and board meeting and had not informed the management of his reason for absence. On May 11, however, he wrote on his Facebook page that he was under pressure from an influential high government official to resign from his post.
In an immediate reaction to the decision taken by the board to remove him, Ahsanul Alam in a press release described the AGM as “a complete farce”. He claimed “some hired people” had turned up to vent their anger at the board of directors that dismissed him from the post.
“It is pointless to hold the post of a director on the board if I cannot speak against the anomalies at the bank,” Ahsanul Alam wrote.
At the press meet, Yusif Abdullah Al-Rajhi claimed that the bank’s condition is much better now and their worry about massive changes to the bank management board has now turned into hope for better banking.
“The previous board was very, very good and the incumbent board is excellent,” he said.
The annual meeting also agreed a 10% cash dividend for shareholders, and approved the balance sheet and profit-and-loss account of the bank for the year 2016.
It also changed the bank’s Risk Management Committee chairman, with Shamim Mohammed Afzal replacing Md Abdul Mabud as the new chair.
IDB to sell two-thirds of its IBBL holdings
The Islamic Development Bank (IDB) is selling off two thirds of its shares in IBBL as part of its tenure strategy to become a matured institution.
The Saudi-based lender will bring down its share in IBBL to 2.1% from the existing 7.5%, IBBL director Dr Arif Suleman said on the sidelines of the bank’s Annual General Meeting (AGM) held at Kurmitola Golf Club in Dhaka on Tuesday.
“There has been a lot of misconceptions that the IDB is leaving IBBL. We are not leaving IBBL, we are reducing our shareholdings,” said Suleman, representing IDB.
“We have served our purpose as an institution in IBBL, but we are not leaving (so) get the misconception out of the way.”
Currently, the IBBL contributes over 25% to SME development in the country and it is making a positive impact. Globally it is recognised as a highly reputable institution.
Despite the reduction in shareholding, IDB will remain on board and will be active in IBBL, says the correspondence of the lender.
Asked about ongoing high-level shakeups in IBBL, Suleman said everything had happened with the consent of the board and has been done in accordance with the rules.
“I do not see any dispute. What the chairman has stated publicly in his address is where the board stands by,” he said.