Muhammad A (Rumee) Ali has decided to step down from the chairman post of Arab Bangladesh (AB) Bank.
He made the official announcement first in a letter to the bank's staff, then at the bank's annual general meeting (AGM) at Sonargaon Hotel in the capital on Wednesday.
“I have stayed with the bank for three years. I think it is enough. I don't want to continue anymore. The bank needs to raise capital to move forward,” Muhammad A (Rumee) Ali told The Business Post.
The Board of AB Bank appointed Muhammad A (Rumee) Ali, a former deputy governor of the Bangladesh Bank, as its chairman on April 20, 2019.
AB Bank posted an 82% year-on-year growth in its consolidated net profit in 2021.
According to its annual disclosure, the bank's consolidated profit increased to Tk71.68 crore, from Tk39.43 crore in 2020. Its earnings per share stood at Tk0.86 and net asset value per share at Tk30.59.
Speaking on the matter, Rumee Ali said, “I always did what was best for the company. In this case, the board never went beyond my decision. Now, I suggest increasing capital to help the bank grow.”
“The board also agrees with me on raising capital. But issuing only bonds is not a viable option for raising capital,” he added.
Responding to a journalist’s query, he said, “I have no clash with the board. I don't want to continue for personal reasons.”
According to the bank’s annual report in 2019, its capital was Tk 788 crore deficit. At the end of the last year, it increased by almost Tk 200 crore and the deficit declined to Tk 581 crore.
Introducing Bangladesh to its very first private sector bank; Arab Bangladesh Bank (AB Bank) Ltd was incorporated in December 1981 and started its operation in April 1982.
The bank was listed in the capital market in 1983 and last year its share price moved between Tk 9.90 to Tk 17.30.
After 2013, the bank didn’t distribute any cash dividends. However, for 2021 AB Bank announced a 3 per cent stock and a 2 per cent cash dividend.
