Dhaka, Bangladesh (BBN)- The central bank has formed a new board of directors for ‘troubled’ Social Islami Bank.
The board of the Shariah-based lender now has five members: one sponsor director and four independent directors.
The Bangladesh Bank (BB) constituted the new board on Sunday after dissolving previous board, which became mired in irregularities after the S Alam Group seized control of the financial institution.
Major (retd) Md Rezaul Haque, the bank's founding shareholder, has been appointed as the director of the new board, according to a letter issued by the central bank.
The appointed independent directors are Maqsuda Begum, former executive director of Bangladesh Bank; M Sadiqul Islam, professor of the Department of Finance at the University of Dhaka; Md Morshed Alam Khandakar, former deputy executive director of Rupali Bank, and Md Anwar Hossain, a chartered accountant.
Since the Awami League government assumed power, SIBL has been under the control of the S Alam Group. The Group is alleged to have engaged in irregularities and corrupt practices within SIBL, particularly in the areas of recruitment and loan disbursement.
Following the allegations, the central bank dissolved the existing board of directors, which was dominated by S Alam Group representatives, and appointed a new board to oversee the bank's operations.
BBN/SSR/AD