Islami Bank Bangladesh, the country's largest private sector lender, has informed shareholders about a big shuffle in its board of directors.
The announcement came through a disclosure made in the Dhaka Stock Exchange (DSE) on Thursday, which consists of the bank’s shareholding report of sponsors and directors for the month of July 2023.
Musaid Abdullah A Al-Rajhi, a shareholder under Arabsas Travel & Tourist Agency, has withdrawn his directorship from the Islami Bank.
As per the latest report, the shareholding of sponsors or directors had increased from 41.90 per cent in June to 42.98 per cent in July this year.
The private sector lender also informed that Abu Sayeed Mohammad Quasem, nominated by Armada Spinning Mills Ltd, has been appointed as a shareholder director in place of Prof Nazmul Hassan.
The bank further informed that Showkat Hossain, nominated by Kingsway Endeavors Ltd, was appointed as a shareholder director. It also informed that Jamal Mostafa Chowdhury, nominated by Uniglobe Business Resources Ltd, has been appointed as a shareholder director.
These changes are subject to the approval of the concerned authorities, whereas the Bangladesh Bank has already accorded its consent.
Islami Bank Bangladesh had witnessed a massive change in its board and management towards the end of 2016. The board's chairman and managing director, along with a number of directors, were replaced during that period.
The bank reported a 1.42 per cent increase in profits in the January-June quarter of 2023. During this period, the bank's consolidated net profits stood at Tk 342.92 crore, compared to Tk 338.09 crore year-on-year.
In the same period, its consolidated earnings per share (EPS) stood at Tk 2.13, compared to Tk 2.10 in the same period of 2022.
The bank was established in March 1983, and listed with the Dhaka Stock Exchange Ltd in 1985. With an authorised capital of Tk 2,000 crore, the bank has a paid-up capital base of Tk 1,609 crore, with Tk 160 crore in securities.
Its sponsor-directors own 42.98 per cent stake in the company, while institutional investors hold 13.58 per cent, foreign investors hold 34.49 per cent, and the public represents 8.95 per cent until July 31 this year, show DSE data.
The state-run Investment Corporation of Bangladesh (ICB) recently sold off all of its holdings in Islami Bank Bangladesh.
ICB, one of the bank’s major local shareholders, also withdrew the directorship of Abu Taher Mohammad Ahmedur Rahman as their representative on the IBBL Board of Directors. The move was approved by the board in its 322nd meeting held on May 31.
Besides, four Middle East-based sponsors — Bahrain Islamic Bank, Islamic Development Bank, Kuwait Finance House, and Dubai Islamic Bank — sold off or reduced their holdings in the bank since 2015.
In 2022, IBBL generated an operating profit of Tk 2,124 crore with a 28.35 per cent growth, and the net profit stood at Tk 592 crore, registering a 27.68 per cent growth.
Ahsanul Alam, son of S Alam Group Chairman Saiful Alam Masood, had previously applied to Bangladesh Bank to get a no-objection certificate (NOC) to be a director of Islami Bank.
