The Bangladesh Bank restructured Premier Bank PLC’s board on Tuesday, citing persistent governance issues and weak policy enforcement.
The central bank identified poor loan management, lack of accountability, and weak policy implementation as key reasons for the move. With this move, the Awami League leader HBM Iqbal’s family has lost control of the bank after two long decades.
The restructuring, carried out under Section 47 of the Bank Companies Act, 1991, aims to restore trust and ensure sound management practices.
The new board includes senior bankers, academics, and professionals known for their independence.
Dr Arifur Rahman represents sponsor shareholders, while independent directors include former Bangladesh Bank executive director Md Forkan Hossain, former UCB managing director Syed Faridul Islam, former Bank Asia deputy MD Md Sazzad Hossain, Dhaka University professor Sheikh Morshed Jahan, and FCS Chartered Secretary M Nurul Alam.
Prior to the restructuring, the board was led by chairman Mohammad Imran Iqbal and vice-chairman Jamal G Ahmed. Other members included Abdus Salam Murshedy, Shafiqur Rahman, Shaila Shelley Khan, Yeh Cheng Min, and Mohammed Ahmed Ali.
Since 15 August, Bangladesh Bank has reconstituted 15 bank boards, signaling its commitment to improving governance. Analysts see the restructuring as a clear signal that mismanagement will not be tolerated.
Expectations are now high for the bank to improve loan discipline and restore depositor confidence.