Abdul Hamid becomes new Islami Bank director, replacing Abdul Jalil

Hamid replaces Independent Director Md Abdul Jalil, who had been under fire for his push to approve a loan to a NASSA Group company

Professional chartered accountant and banker SM Abdul Hamid has been appointed as an independent director at Islami Bank.

He replaces Independent Director Md Abdul Jalil, who was removed from the bank’s board amid a dispute over defaulted loans.

Hamid said, "The priority is to strengthen the bank's financial health. Bangladesh Bank will prioritise some issues, which will be selected after looking at the current state of the bank. We will try to get the bank to a good position."

Bangladesh Bank spokesperson and Executive Director Arifur Rahman Khan said that Bangladesh Bank needed to appoint a new independent director and had done so.

He described it as a part of the central bank’s routine work.

Bangladesh Bank sent a letter to Islami Bank appointing Hamid as a director. Although he did not receive the letter from the central bank himself, Islami Bank informed him of the appointment.

Hamid said that he will attend the first board of directors meeting that is scheduled after the Eid holidays.

Hamid began his career at a private bank after completing his studies in accounting. After working at various private banks, he was appointed the deputy managing director and chief financial officer of IFIC Bank in 2017.

He has also worked at the privately owned Premier Bank. After 37 years as a banker, he is currently a partner in the accounting firm Islam Jahid & Co.

Jalil was removed by Bangladesh Bank before Hamid’s appointment. Jalil had once worked at the NASSA Group, a company owned by former Exim Bank chairman Nazrul Islam Mazumder.

After being appointed as a director at Islami Bank, Jalil tried to approve a loan to an institution within that group. When criticism arose about loans being provided to controversial institutions, Bangladesh Bank investigated the complaint.

Evidence was found regarding the truth of the complaint, but it took some time for Jalil to be removed. His name and photo were not removed from the Islami Bank website’s board of directors as of Monday afternoon.

A senior bank official said that the names of the new directors will be updated according to official letters when the bank reopens after the Eid holidays.

Currently, Islami Bank has five directors. Bangladesh Bank had appointed them all as independent directors.

Since being removed from the control of the S Alam Group, the bank has had no shareholder directors.