Government will not intervene in Islami Bank affairs, says finance minister

The government will not intervene in the affairs of Islami Bank Bangladesh although the lender’s top board members are engaged in a tug-of-war, Finance Minister AMA Muhith has said.

Islami Bank, which is known as the financial backbone of Jamaat-e-Islami, saw a major shake-up in its board of directors in January.

Arastoo Khan was made the chairman and Syed Ahsanul Alam Parvez was re-designated as vice-chairman while Md Abdul Hamid Miah was appointed as its managing director.

The conflict between Arastoo Khan and Syed Ahsanul Alam Parvez has made headlines.

Asked to comment on the boardroom battle, Muhith said: “There is no reason for the government to intervene. It is all under the jurisdiction of the board.”

The minister talked to reporters after holding a pre-budget meeting with the Dhaka Chamber of Commerce and Industry and Bangladesh Insurance Association.

He asserted that the changes made to the board were normal as the former chairman is 83 years old now.

The battle first came under media glare after Parvez wrote a Facebook post on May 11 that Islami Bank's control has returned to anti-liberation forces.

Pervez, an independent director, and Qazi Shahidul Alam, another board member, informed media that Tk 4.5 billion zakat money would be transferred to the prime minister's zakat fund.

Four days later, the bank denied the claims in a statement.

Asked to explain the reason of conflict between the chairman and the vice-chairman, the minister said: “I have no idea.”

But he expressed confidence in Arastoo Khan, the current chairman of the bank, and said: “He is a very competent man. He once served as my additional secretary.”

“We will intervene only if IDB (Islamic Development Bank) asks for an explanation.”

Following Vice-Chairman Parvez’s statement that he may resign, nine other colleagues expressed solidarity with him.