Bankers who retired with integrity and good reputation will now be eligible to become managing directors (MDs) of state-owned commercial banks. To make this possible, the Financial Institutions Division of the Ministry of Finance is set to revise its existing policy and introduce a new framework for top appointments at state-owned banks.
The new policy will be titled: “Policy on Appointment, Promotion, and Posting of Managing Directors, Deputy Managing Directors (DMDs), and General Managers (GMs) of State-Owned Commercial Banks, Specialised Banks, and Financial Institutions–2025.”
For the first time, intelligence reports and Anti-Corruption Commission (ACC) clearance will be made mandatory for appointing MDs under the new policy.
Although such reports are already sought in practice, they were never explicitly included in the policy. Now, they will be formally required—not just for MDs, but also for DMD and GM positions at specialised banks and financial institutions.
With the new provision, retired bankers under the age of 65 will be eligible for appointment as MDs. Officials say the move aims to utilise the expertise of experienced bankers. Bangladesh Bank has also agreed to the reform.
Bangladesh Bank Governor Ahsan H Mansur told Prothom Alo, “We support the policy being framed by the Financial Institutions Division regarding the recruitment and promotion of GMs to MDs in state-owned banks and financial institutions.
Since bankers retire at 59, and given that MDs in state-owned commercial banks can serve up to 65 on three-year contracts, we welcome this initiative. It will create opportunities for honest, dedicated, and proven bankers to continue contributing to the sector.”
Currently, MDs of state-owned commercial banks are appointed either from serving MDs at other state-owned institutions or through promotion from DMDs. Under the draft of the new policy, retired MDs and DMDs will also be considered for appointment.
Financial Institutions Division Secretary Najma Mobarek confirmed to Prothom Alo that the draft is at its final stage and could be issued as a gazette notification this week.
According to the draft, MD candidates must hold at least a postgraduate degree and must not have received a third division/class at any stage of their education. For SSC or HSC (or equivalent exams), a GPA below 3 will not be accepted. Similarly, under university grading systems, a minimum CGPA of 2.5 out of 4 or 3.0 out of 5 will be required.
Applicants with advanced academic or professional qualifications in economics, accounting, finance, banking, management, or business administration will be given preference—something not specified in the existing policy.
The draft also requires MD candidates to have at least 20 years of experience at state-owned banks or financial institutions, including at least two years as DMD.
The selection committee for MD appointments is also being restructured. The current six-member body will be expanded to seven. At present, the finance minister chairs the committee, while the prime minister’s principal secretary, Bangladesh Bank governor, finance secretary, and the Financial Institutions Division secretary serve as members, with an additional secretary from the Division as secretary to the committee.
In the new selection committee it is mentioned as ‘the Finance Minister/Finance Adviser’, and ‘the Prime Minister/Chief Adviser’. The Secretary of Public Administration will be newly added, while other members remain the same. Final approval of appointments will rest with the Prime Minister/Chief Adviser.
Syed Abu Naser Bukhtear Ahmed, former MD and current chairman of state-owned Agrani Bank, welcomed the move.
Speaking to Prothom Alo, he said, “Allowing capable retired bankers to become MDs is a good initiative. Intelligence clearance was already necessary, and it must remain—because someone who was clean earlier might later become engaged in anti-state activities. ACC reports should be taken seriously. A master’s degree requirement is also crucial. However, I believe no one below the age of 50 should be made MD, since experience carries significant weight.”
Rule Changes for DMD and GM Appointments
The new policy also introduces changes for the promotion and appointment of Deputy Managing Directors (DMDs) and General Managers (GMs).
For DMDs, 20 years of work experience will be required, including at least two years as GM. For GMs, 18 years of work experience will be required, including at least three years as Deputy General Manager (DGM).
Direct recruitment to higher posts remains permissible, as in the current system, but with raised requirements. For DMD posts, 17 years of work experience as Principal Officer (PO) will be required—up from the current 14. For Senior Principal Officer (SPO), 14 years will be needed; for Assistant General Manager (AGM), 11 years; and for DGM, 8 years.
For direct GM appointments, at least 15 years of experience as PO will be required (up from 12). SPOs will now need 12 years (instead of 9), and AGMs 9 years (instead of 6). Direct recruits must also have at least 6 years of experience as DGM—a provision that did not exist earlier.