Fresh instability has gripped Islami Bank Bangladesh PLC, one of the country's largest Shariah-based financial institutions.
This latest wave of unrest centers on a sudden shake-up of the board of directors and deepening internal divisions.
A significant realignment within the board—occurring just before the managing director was sent on a lengthy leave—has complicated an already tense atmosphere.
Sources indicate that a director perceived as being aligned with the Jamaat-e-Islami ideology was recently removed from the board.
In their place, new members have been inducted who are widely viewed as being close to the controversial S Alam Group.
Analysts suggest this is not merely a personnel change but a strategic shift in the bank's decision-making power, the effects of which have already reached the highest levels of management.
The decision to send the Managing Director (MD) and CEO, Mohammed Monirul Mowla, on a 49-day leave starting Monday (April 13) has sparked intense speculation.
Although the MD had reportedly requested only 15 days of personal leave, the board extended it to nearly a month and a half, ending May 31.
Industry veterans note that such "mandatory" leaves are often precursors to permanent leadership changes.
While the board maintains the decision was based on a personal request, insiders claim the MD was verbally advised by the board to take an extended absence—a move seen by many as a strategy to clear the path for a new leadership equation.
The bank's internal environment is currently marked by a sharp binary divide.
Officials who have been with the institution for decades and are seen as ideologically aligned with the bank's founding roots are reportedly living in fear of losing their positions.
Conversely, a segment of employees recruited after 2017—during the period of S Alam Group's peak influence—reportedly view the current changes with satisfaction.
Adding to the tension is a growing concern over internal data security.
Claims have surfaced that over 700 officials continue to leak sensitive internal documents.
In a particularly high-profile instance, the educational certificates of a high-ranking executive were allegedly leaked to the public.
Experts warn that such breaches threaten not just individuals, but the overall credibility and security of the institution.
The central question echoing through the "Bank Para" (banking district) is whether the S Alam Group is reclaiming its influence over Islami Bank.
The combination of the board reshuffle, the MD's sidelined status, and rumors of political backing from elements of the BNP-led government has fueled these fears.
This follows a turbulent history for the bank. After the S Alam Group took control in 2017, the bank faced years of controversy.
Following the political transition in 2024, the central bank reconstituted the board to diminish the influence of that group. Now, observers fear those efforts are being reversed.
The unrest has drawn a sharp response from Dr Shafiqur Rahman, Ameer of Bangladesh Jamaat-e-Islami and Leader of the Opposition in Parliament.
Speaking at a national seminar on Monday (April 13), he expressed grave concern over what he termed a "new coup" within the bank.
He further criticized the government for attempting to "partisanize" the banking sector, warning that the public would not remain silent if the nation's largest financial pillar was compromised for political gain.
The situation is further complicated by the recently passed Bank Resolution Act, 2026. The law allows former shareholders of troubled banks to reclaim ownership under certain conditions—a provision that Transparency International Bangladesh (TIB) has labeled a risk for the "rehabilitation" of accused groups.
Analysts are now linking the management changes at Islami Bank to the windows of opportunity opened by this new legislation.
The anxiety has spilled into the streets, with groups of customers organizing human chains to protest what they call a "hostile takeover" attempt by a specific group.
Some depositors have openly threatened to withdraw their funds if the bank falls back into the hands of those responsible for previous irregularities.
