12 banks to get new managing directors

Some 10-12 banks in the private sector are going to get new managing directors (MDs). They will be appointed gradually in the next two years.

The move came in the context that several experienced MDs are going to retire soon. The list includes the MDs of BRAC Bank, Dutch-Bangla Bank, Mutual Trust Bank, Eastern Bank and Midland Bank.

At the same time, MDs of six banks, which are on verge of being dissolved due to irregularities, have been sent on enforced leaves. It is highly unlikely that they would return. They are likely to step down before completing their terms.

So, these 10-12 banks will see new faces in the top post, relevant banking sector sources say.

According to the Bangladesh Bank policy, although the age limit for bankers is 59 years, MDs can serve until 65 years maximum. The MD must have 20 years of experience as a banker and might be over 45 years of age.

Although the bank owners would exert influence to appoint corrupted persons in the MD posts in the past, the central bank is not allowing this to happen anymore. The Bangladesh Bank has prepared a new policy to prevent controversial bankers like PK Halder or ABM Mokammel Haque Chowdhury from taking over.

Now, a MD candidate will have to make a commitment to reach the commercial target of the bank and pass a viva at the central bank. Each of these MDs will be in charge for three years, which was five years during the term of the previous government.

Relevant persons say although many are interested in the MD post given the hefty salary, other facilities and the power associated with it, a very few of the bankers get the opportunity. Most of the incumbent private bank MDs started their careers with foreign banks. The same goes for many of the deputy managing directors (DMDs). They are also interested in the top post.

Speaking to several private bank entrepreneurs, it has been learnt the bank business is under a tough challenge due to the endless irregularities and forgery in the sector in the last 15 years. Therefore, everyone is looking for efficient persons with a good image for these posts.

However, officials with such criteria are rare in the local banks. So contacts have been made with Bangladeshi bankers at top positions in foreign banks. There has already been some progress in this regard. Singapore-based international banking and fintech consultancy agency Asia FIIT co-founder Osman Ershad Fayez has already joined the Eastern Bank as an additional MD. He also served as the MD and chief executive director at Standard Chartered Singapore. Another bank is in talks with a banker who served as the chief executive of Standard Chartered Bank’s operations in Bangladesh.

It has been learnt that Dutch-Bangla Bank Limited (DBBL) MD Abul Kashem Md Shirin will retire on 6 February next year. He took charge of the bank in 2016. The term of Midland Bank MD Ahsan-Uz Zaman ends on 24 February, next year. He has been serving the bank as the MD since 2014.

BRAC Bank MD Selim RF Hossain will retire on 4 March next year. He was also the MD of IDLC Finance from 2010 to 2015. He was appointed the BRAC Bank MD in October, 2015. Easter Bank Limited MD Ali Reza Iftekhar will end his term on 19 April, 2026. He has been in the post since 2007.

Mutual Trust Bank managing director Syed Mahbubur Rahman will retire on 16 February 2027. He became the MD of the bank in 2010. He also worked with the BRAC Bank and Dhaka Bank. He was the only one among the private bank MDs, who was vocal against different irregularities and corruption in the banking sector in the last 15 years.

These soon to be retired MDs have been in the leadership of Association of Bankers Bangladesh, an organisation of managing directors in the banking sector. They are also known as influential bankers. They have roles in legislation of different laws and policies of the banking sector.

Apart from that, Community Bank managing director Mashihul Haque Chowdhury has already retired. The recruitment procedure for a new MD at the bank is underway. The term of Citizens Bank MD Mohammad Masum ended last 27 February. The board of directors of the bank has decided to appoint Bank Asia deputy managing director (DMD) Alamgir Hossain as the MD. The appointment will be finalised upon approval from the central bank.

Sheikh Mohammad Maruf joined as the MD of Dhaka Bank in October last year. Before that, he served as the additional MD at City Bank. There have been discussions that several of the vacant posts of MDs are to be filled up by the additional MDs of different banks.

Meanwhile, international auditors started surveys on the six week banks under vulnerable situations due to irregularities in January. The MDs of these banks have sent on forced leaves for three months for this. The six banks are – First Security Islami Bank, Social Islami Bank, Global Islami Bank, Union Bank, Exim Bank and ICB Islami Bank.

Former executive director of Bangladesh Bank Md Humayun Kabir has already joined as the Union Bank MD. The ICB Islami Bank board of directors has proposed the name of former central bank executive director Anwarul Islam for the MD post. Meanwhile, former Shahjalal Islami Bank officials M Akhter and Abdul Aziz have joined the Exim Bank as additional MDs.

Speaking to Prothom Alo regarding this, DBBL managing director Abul Kashem Md Shirin said, “My term as the MD ends next year. Before that, I want to further strengthen the bank.”

*This report appeared on the print and online versions of Prothom Alo and has been rewritten in English by Ashish Basu