The High Court Division of the Supreme Court of Bangladesh has blocked a move by the board of Standard Bank PLC to reappoint its managing director, intervening in a deepening boardroom conflict at the shariah-based lender as bad loans surge to nearly a third of total lending and the central bank maintains close oversight.
In an order dated 7 January 2026, the High Court admitted a company petition and directed the bank’s board not to take any resolution on the proposed reappointment of the managing director.
According to a lawyer notice issued the same day, five petitioners – AKM Abdul Alim, director shareholder; Kazi Akram Uddin Ahmed, shareholder; Ashok Kumar Sahit, director shareholder; Mohammed Zahedul Hoque, director shareholder; and Ashit Kumar Saha, director shareholder – filed Company Matter under the Companies Act, 1994, and the Companies Rules, 2009.
Justice Debasish Roy Chowdhury issued a show-cause notice asking why Proposal relating to the reappointment of the managing director and placed in the bank’s board meeting – should not be declared to have been issued without lawful authority.
The order requested the bank and its board not to adopt any resolution on the agenda, as the matter is now sub judice.
The court action comes amid a sharp split within Standard Bank’s 16-member board over the fate of Managing Director Md Habibur Rahman. One faction is led by Chairman Mohammed Abdul Aziz, while the other is steered by his son and Vice-Chairman A K M Abdul Alim.
The Alim-led group has accused Rahman of corruption and sought his removal, alleging loan irregularities during his previous tenure at Union Bank. It wrote several times to Bangladesh Bank seeking his forced leave. The central bank rejected the request, citing unproven allegations, and instructed the board to continue with Rahman.
Aziz’s group has defended the managing director and accused the opposing faction of disrupting operations and attempting to place preferred candidates in key roles, including exchange houses abroad. In a 5 November 2025 letter to the governor, Aziz alleged operational obstruction.
The Alim faction replied four days later, reiterating its demand and claiming that “numerous corruption cases” are pending at the Anti-Corruption Commission.
Bank officials, speaking anonymously, said the feud has paralysed decision-making.
