Islami Bank Chairman Arastoo Khan resigns

Islami Bank Chairman Arastoo Khan resigned as the largest private bank failed to return from losses over a year since the former secretary took charge.

His departure illustrates the divisive environment that plagued the bank for long and ultimately cut into its performance.

The bank immediately appointed independent director Prof Nazmul Hassan as the new chairman on Tuesday as the boardroom battle heated up.

The bank announced the change in a media statement in the afternoon, but did not reveal the reason behind Khan’s resignation. People familiar with the situation said he was forced out of the board as he fell out with most other directors.

Khan did not receive phone calls from bdnews24.com for comment.

Prof Nazmul Hassan delivers speech at a programme. Photo: Islami Bank website

Prof Hassan is now holding dual appointments at Dhaka University and Brown University in the US.

He started his career as a lecturer at Dhaka University back in 1975. He was appointed professor at the university’s Institute of Nutrition and Food Science in 1993.

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His predecessor Khan, a former secretary, was made chairman of Islami Bank on Jan 5 last year in a major shakeup in the top brass of the bank.

"Wait until December," he said in response to a query on the bank’s condition on Nov 2 last year as the bank saw its earnings per share drop year-on-year in July-September quarter of 2017 like the two previous quarters.

The bank's EPS dropped from Tk 2.45 to Tk 1.85 in January-September period last year, marking a nearly 24.5 percent plunge.

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Khan, a former member of the Planning Commission, had been an additional secretary at the Economic Relations Division. He had also been at the finance ministry for a long time.

He had also worked as the chairman of Bangladesh Commerce Bank and as director of several government and private banks, including IFIC Bank, Karmasangstan Bank and Agrani Bank.