Islami Bank MD sent on forced leave

The managing director (MD) of Islami Bank, Mohammed Monirul Moula, has been sent on a three-month forced leave, with effect from Monday. At the same time, the bank has decided to write to the Bangladesh Bank about the MD’s irregularities and request actions against him.

The bank took this decision in the 359th meeting of the board of directors on Sunday, in response to the MD’s alleged involvement with loan irregularities of S Alam Group. Additional MD Omar Faruk Khan has been appointed as acting MD for now, according to a source.

The bank came under the control of S Alam Group in 2017 and remained until the ouster of the Awami League regime. After the fall of the Awami League government, the central bank restructured Islami Bank’s board of directors, appointing former banker Obayed Ullah Al-Masud as chairman.

The new board of directors engaged four audit firms to look into irregularities in the bank. According to a reliable source, the audits uncovered the MD’s involvement in irregularities in loans amounting to around Tk 1 trillion linked to S Alam Group. Hence, he has been sent on forced leave.

Besides, the bank will issue a letter to the central bank with details of his irregularities and seek his removal.

A Bangladesh Bank official, who is involved in monitoring Islami Bank, told Prothom Alo that the MD remained in office though S Alam fled the country. As officials of the bank were feeling uncomfortable with him, the board had to send him on leave.

Besides, there was no alternative to his removal to implement the audit reports transparently, he added.