Islami Bank AGM pushed back two and a half months amid board crisis

The bank’s annual general meeting has been delayed due to absence of board of directors

Islami Bank Chalkbazar branch

Islami Bank's annual general meeting (AGM) has been postponed by two and a half months amid an ongoing protest by a group calling itself the "Customer Forum”, which has demanded the appointment of a new board of directors at the bank.

The bank announced through the Dhaka Stock Exchange (DSE) on Thursday that the AGM has been rescheduled to Sept 16. The meeting had originally been set for Jun 28 at the Kurmitola Golf Club in the capital. The venue remains unchanged.

The decision was made on Wednesday by Mohammad Zahir Hussain, executive director of Bangladesh Bank, who currently holds full authority over Islami Bank's board.

The bank's board of directors did not approve any dividend for investors for 2025. Last year, the bank's earnings per share stood at Tk 0.85, cash flow per share was Tk 26.18, and net asset value per share was Tk 44.52.

The AGM had initially been scheduled for Jun 25, before being pushed back three days to Jun 28, and has now been postponed further.

Islami Bank chairman Zobaidur Rahman and managing director Omar Faruk Khan resigned on May 24, ahead of Eid-ul-Azha. On the same day, Bangladesh Bank appointed former deputy governor of Bangladesh Bank Khurshid Alam as the new chairman.

After Eid, a group under the banner of "Islami Bank Shachetan Grahak Forum" (Islami Bank Conscious Customer Forum) began staging demonstrations outside the bank's offices in opposition to the decision. Their protests have continued since.

Within days of the protests beginning, reports emerged that customers had withdrawn around Tk 3 billion from the bank. The matter was also debated in parliament, with the government and the opposition trading allegations.

When Jamaat-e-Islami raised allegations in parliament that attempts were being made to retake control of the bank, the finance minister countered, saying efforts were under way to "destabilise the bank for political gain."

Amid the controversy, Bangladesh Bank cancelled the appointments of chairman Khurshid and all independent directors on Jun 14, granting full board authority to its executive director Zahir. Prior to this, Ashraful Alam had been appointed as an observer.