M Zubaidur Rahman has resigned as chairman of Islami Bank Bangladesh PLC, citing “personal reasons.”
He submitted his resignation letter to Bangladesh Bank Governor Md Mostaqur Rahman on Sunday.
Confirming the development, Bangladesh Bank spokesperson Arief Hossain Khan told TIMES: “He resigned citing personal reasons.”
Bangladesh Bank appointed Zubaidur Rahman as an independent director of the country’s largest Shariah based bank on July 23 last year. Since then, he had been serving as chairman of the board.
Before him, Obayed Ullah Al Masud served as chairman in his capacity as an independent director. Masud later resigned after allegations of financial irregularities against him came under investigation. Zubaidur Rahman was subsequently appointed to the post.
Officials at Bangladesh Bank and Islami Bank said differences had recently emerged between the central bank’s top leadership and several senior officials of the bank, including the chairman and managing director (MD).
Amid the tensions, Managing Director Omar Faruk Khan was sent on 49 days of “mandatory leave.” Later, chairman Zubaidur Rahman travelled abroad for one and a half months on condition that he remained connected to board meetings online.
During this period, pressure allegedly mounted on Omar Faruk Khan to resign, according to sources familiar with the matter.
Documents show that a scheduled board meeting at the bank’s head office on Sunday was cancelled due to what the bank described as “unavoidable circumstances.”
Since Sunday morning, a group identifying themselves as customers, along with some bank officials, staged demonstrations in front of the bank’s head office demanding that Omar Faruk Khan should not be forced to resign.
Instead, they called for the resignation of chairman M Zubaidur Rahman.
Amid the growing tensions, Zubaidur Rahman submitted his resignation letter to Bangladesh Bank later in the day.
Meanwhile, a source claimed that MD Omar Faruk Khan had also submitted his resignation letter to the board. However, no decision was taken as the board meeting was cancelled.
Under banking regulations, the resignation of a MD requires board approval to become effective. As Zubaidur Rahman had been appointed by Bangladesh Bank, he submitted his resignation directly to the central bank.
Repeated attempts to contact both Zubaidur Rahman and Omar Faruk Khan for comment were unsuccessful.
Zubaidur Rahman began his career in 1975 as a lecturer at the Finance Department of University of Dhaka. He later earned a PhD in finance from University of Manchester.
Over the years, he held senior academic positions in several countries. He served as a professor at State University of New York and worked as a visiting professor at Bocconi University and Moscow State University. He also worked for the World Bank for a long period.
In 2017, the controversial S Alam Group took control of Islami Bank. After the fall of the Awami League government following the July uprising, Bangladesh Bank removed individuals linked to the conglomerate and handed control of the bank to independent directors.
