Banks in Bangladesh, both private and state-owned, previously dominated by specific industrial groups with strong ties to the ousted Awami League government, have been experiencing significant upheaval and unrest following the government's fall.
The resignation of several top management officials from various banks has created a leadership vacuum, disrupting key operations and prompting many banks to suspend loan approvals and disbursements.
Protests have erupted among bank officials in front of their head offices, demanding accountability for those involved in facilitating anonymous loans, money laundering, extortion, and unlawful recruitments, as well as the reinstatement of employees who were unjustly or forcibly dismissed. In several instances, scuffles and clashes have broken out between groups, resulting in injuries.
A shooting incident on Sunday between two groups within Islami Bank PLC resulted in bullet injuries to five people, including four officials of Islami Bank. The conflict escalated after several officials, appointed to the bank after 2017 when S Alam Group took control, were expelled last week.
In response, Islami Bank officials who were appointed before 2017 staged a protest and formed a human chain in front of the bank’s head office in Motijheel, demanding protection of the bank from S Alam Group’s influence. They also declared that employees appointed after 2017 would be barred from entering the office.
Eyewitnesses reported that a scuffle broke out between the two groups, leading to gunfire. Five individuals were injured, one of them seriously, and was subsequently taken to hospital. Former employees of Islami Bank accused the post-2017 appointees of instigating the violence.
Regarding the instability at Islami Bank, Finance and Planning advisor for the interim government Salehuddin Ahmed said at the secretariat on Tuesday, "No one is above the law. If anyone has engaged in illegal activities, legal action will be taken against them immediately."
"I will discuss the matter, and if necessary, involve law enforcement," he added.
Meanwhile, in a letter addressed to the managing directors and CEOs of all scheduled banks in Bangladesh, Mohammad Shahriar Siddiqui, director of the Banking Regulation and Policy Department (BRPD) at Bangladesh Bank, noted that the central bank has observed activities in certain banks that are contrary to proper discipline.
"These activities are disrupting normal operations and transactions, potentially leading to a loss of depositor confidence. Such actions are punishable under Section 57(2) of the Bank Companies Act, 1991. Therefore, all concerned are urged to refrain from any actions that could harm depositor trust," the letter stated.
Instructions have been issued to ensure everyone is aware of this directive, it added.
Unrest at IFIC Bank
Meanwhile, former employees of IFIC Bank PLC have called for the resignation of Salman F Rahman as chairman. Rahman previously served as the advisor on private industry and investment to former prime minister Sheikh Hasina.
The protesters also demanded the resignation of Rahman's son, Ahmed Shayan Fazlur Rahman, who is the bank’s vice chairman, along with all directors representing BEXIMCO Group.
Additionally, the sacked employees are calling for the reinstatement of those they claim were “unfairly” dismissed during the tenure of the former managing director, Shah A Sarwar.
On Sunday, more than 200 people protested under the banner of “IFIC Bank's Sacked Officials” in front of the bank’s head office.
Unrest at SIBL and UCB
Last Thursday, Social Islami Bank PLC (SIBL), previously controlled by the S Alam Group, was taken over by its former entrepreneurial directors.
Additionally, National Bank Limited, which had been under S Alam Group's control for the past few months, is reportedly undergoing another change in ownership, according to bank sources.
United Commercial Bank PLC, taken over by the family of former Land Minister Saifuzzaman Chowdhury Javed from the Partex Group in 2017, is also now facing unrest.
Reports indicate that shareholders and officials at various levels have declared that they will not permit the current directors to enter the bank.
Turbulence at Bangladesh Bank
Amid the ongoing turmoil, Bangladesh Bank Governor Abdur Rauf Talukder has been absent from his office since Sheikh Hasina resigned as prime minister on August 5, leaving most officials unaware of his whereabouts.
He submitted his resignation to Financial Institutions Division Secretary Abdur Rahman Khan on Friday, resulting in the central bank being without a governor for a day.
Deputy Governor Nurun Nahar was appointed as the acting governor of Bangladesh Bank, following a directive issued on Sunday in an order signed by Financial Institutions Division Deputy Secretary Afsana Bilkis.
After the regime change on Wednesday, a group of officials demanded the resignation of the central bank governor, four deputy governors, advisers, and the head of the financial intelligence department. They coerced a deputy governor into signing a blank resignation letter and pressured four other senior officials to step down.
Senior officials noted that this is the first time such an incident has occurred at the central bank following a change of government. According to the protesters, all the top officials who were forced or persuaded to resign were serving on a contractual basis.
