Bangladesh Bank dissolves Premier Bank board, forms new one

The shake-up breaks the 26-year stranglehold of former MP HBM Iqbal’s family over the bank

Bangladesh Bank hasboard of directors of Premier Bank and appointed a new six-strong board to “safeguard interests of the depositors”.

The change was made on Tuesday, said the central bank’s assistant spokesperson Shahriar Siddiqui, adding that the previous board had suffered from “a lack of governance, weak policy implementation, and breaches in discipline”.

“Bangladesh Bank has the authority to dissolve a bank’s board if depositors’ interests are under threat. That’s why a new board has been formed,” he told bdnews24.com.

The dissolved eight-strong board was chaired by Mohammad Imran Iqbal, son of HBM Iqbal -- a former Awami League MP who chaired the bank since its founding in 1999 until stepping down in January this year.

The change effectively ends the Iqbal family’s control of the bank after 26 years.

HBM Iqbal had handed over the chairman's post to his son in January, citing health reasons.

He resigned on Jan 12, and the resignation was accepted two days later.

Around the same time, his other son Moin Iqbal, who served as vice-chairman, also stepped down without giving any reason.

Both also relinquished their roles as directors.

Despite stepping down from formal roles, banking insiders said HBM Iqbal continued to influence the board’s decisions through his family.

Following the government change, the Anti-Corruption Commission (ACC) opened a probe into allegations of corruption against HBM Iqbal.

Based on initial complaints, the ACC said HBM Iqbal, while serving as chairman of Premier Bank since 2011, misused his position to develop several properties -- including Renaissance Dhaka Gulshan Hotel, the Hilton Hotel and Resort in Gulshan-2, and the Royal University of Dhaka.

During this period, he was also a member of the Bangladesh Association of International Recruiting Agencies (BAIRA).

The national anti-graft agency also alleged that over the past decade, he acquired ownership of multiple companies and amassed significant wealth by holding key positions in them.

NEW BOARD MEMBERS

Arifur Rahman has been appointed as a sponsor director of the bank.

The other five independent directors are – former Bangladesh Bank executive director Md Forkan Hossain; former United Commercial Bank additional managing director Syed Faridul Islam; former Bank Asia deputy managing director Md Sazzad Hossain; Dhaka University IBA professor Sheikh Morshed Jahan; and FCS Chartered Secretary M Nurul Alam.