The board of Islami Bank Bangladesh PLC has reportedly pressured its Managing Director Md Omar Faruk Khan, to resign from his position.
Sources indicate that he has been asked to submit his resignation letter to the board this Sunday, coinciding with a scheduled board meeting.
Khan is currently on a 49-day “mandatory” leave, which is set to conclude on 31 May. Sunday marks the final working day before the commencement of the Eid-ul-Adha holidays. Although the top banker had initially applied for 15 days of recreation leave, the board instead placed him on an extended leave starting from 12 April.
Multiple sources within Islami Bank and Bangladesh Bank have claimed to TIMES of Bangladesh that “higher authorities” are unwilling to retain Khan as the MD of the country’s leading bank for political reasons, though the specific identity of these authorities remains undisclosed.
These sources allege that Khan is involved in Jamaat-e-Islami politics and accuse him of using Islami Bank to campaign for the party during the recent national elections.
Conversely, two other sources pointed out that Khan received his promotion to deputy managing director (DMD) while the bank was under the control of the S Alam Group. During that period, he served as the head of the Business Development department, a fact now being used against him.
A central bank report has linked Khan to loan irregularities involving the Nassa Group.
It has also emerged that the documentation regarding his appointment approval was twice returned by senior officials at the central bank before Bangladesh Bank finally authorised his appointment on the third attempt.
An anonymous official from Bangladesh Bank informed TIMES that the Banking Regulation and Policy Department (BRPD) had included specific notes regarding Khan in his approval file.
“The current authorities may be bringing these issues forward to remove him,” the official stated, adding that he might be asked to resign to ensure an “honourable exit”.
When contacted, Khan declined to comment on the matter, and the bank’s Chairman, M Zubaidur Rahman, also offered no statement.
Khan was appointed managing director of Islami Bank on 3 August 2025.
This followed the dismissal of the previous MD, Muhammad Munirul Moula, in May, amidst allegations of various irregularities and fraud. Khan initially took over as MD in an acting capacity.
He began his career at Islami Bank in 1986, later resigning from a DMD post during the previous government’s tenure to join NRB Bank as additional MD.
Following the ascent of the BNP-led government, Bangladesh Bank removed Abdul Jalil from the bank’s five-member board of directors. Jalil was known as the sole Jamaat-leaning representative on the board and was replaced by SM Abdul Hamid.
Previously, on 17 July 2025, the then-Chairman Md Obayed Ullah Al Masud resigned following an investigation by the Bangladesh Financial Intelligence Unit (BFIU).
The board of Islami Bank was reconstituted by the central bank on 22 August 2024, following the ousting of the Awami League government on 5 August 2024. Masud was initially appointed Chairman, succeeded later by the current Chairman Zubaidur Rahman.
Historically, Islami Bank was managed for many years by a board comprising Jamaat-leaning individuals and representatives from several Muslim countries and agencies.
However, in 2017, the controversial S Alam Group seized control of the bank with the assistance of Bangladesh Bank and the use of state intelligence agencies.
