Khurshid Alam’s appointment as Islami Bank chairman valid despite wife’s loan default: Bangladesh Bank

Following widespread discussions and criticism on social media regarding whether the newly appointed chairman of Islami Bank, Md Khurshid Alam, is a loan defaulter, Bangladesh Bank has issued a clarification.

The central bank stated that Khurshid Alam is not a defaulter himself; rather, an institution owned by his wife has defaulted on a loan. It clarified that his wife's status as a defaulter does not legally prevent Khurshid Alam from holding the chairman’s position.

Speaking to journalists in response to a query today, Tuesday, Arif Hossain Khan, executive director and spokesperson of Bangladesh Bank, said, “Upon investigation, it was found that Khurshid Alam's wife is a joint owner of a firm that took a loan of Tk 30 million from First Security Islami Bank. That loan later became classified as defaulted.”

Arif Hossain Khan added, “Consequently, it is incorrect to label Khurshid Alam as a loan defaulter. While the firm owned by his wife defaulted on its debt, Khurshid Alam is not personally a defaulter. There is no legal bar to him becoming chairman due to his wife's loan status.”

Regarding the resurgence of past allegations against Khurshid Alam, the spokesperson told reporters that incorrect information had been presented against him at that time. As a result, the disciplinary action previously taken against him was deemed inappropriate. This led to his subsequent promotions to the roles of executive director and deputy governor.

Addressing the appointment of Khurshid Alam as the Chairman of Islami Bank, the spokesperson asserted that the central bank believes its decision is correct. He further stated that Bangladesh Bank will not change its decision in the face of any protests or pressure.