‘I wasn’t allowed to work freely,' Commerce Bank MD says after resigning

Friction between Mosharraf and the board has escalated after a proposal to waive Tk 480 million in loan interest for a company

Commerce Bank’s Managing Director Mohammad Mosharraf Hossain has resigned, citing board interference and a lack of operational freedom, particularly over a disputed interest waiver of Tk 480 million.

Though he had two years left in his contract, Mosharraf submitted his resignation to the bank’s chairman on Wednesday, with a copy sent to Bangladesh Bank as per rules.

“I tried my best to rebuild this fragile bank,” he told bdnews24.com on Thursday. “But given the obstructions and overall situation, I felt it was best to step down.”

He said he repeatedly told the board he was not being allowed to work independently.

“So many issues plagued the bank... A managing director needs the environment to act professionally, but various obstacles were created.”

According to a senior bank official, friction between Mosharraf and the board escalated after a proposal to waive Tk 480 million in loan interest for a company. “The board sought a no-objection from Bangladesh Bank for the waiver and pressured the MD to go along. He refused. This, along with other matters, led to growing distance between the MD and the board.”

After the political shift on Aug 5 last year, the banking sector began undergoing reform.

In September, Bangladesh Bank dissolved the existing Commerce Bank board, which was then dominated by the S Alam Group, and appointed new independent directors and a chairman, former executive director of the central bank, Md Ataur Rahman.

Mosharraf, 63, was appointed MD for 2.5 years in January 2025, with the option to serve until the age of 65. But after just six months, he has stepped down amid what insiders describe as a tense power struggle.