A new eligibility requirement has reshaped the race for appointing managing directors (MDs) of Bangladesh’s state-owned banks. The rule has put officials promoted during the previous Awami League government in a stronger position while leaving those elevated after the change of government out of the current selection process.
The Ministry of Finance’s Financial Institutions Division (FID) has started the process of appointing new MDs for state-owned banks (SOBs). As part of the process, it has prepared a shortlist of 19 deputy managing directors (DMDs) with at least two years’ experience in the post.
According to FID sources, the next MDs of Sonali Bank, Janata Bank, Agrani Bank, Rupali Bank, BASIC Bank, Rajshahi Krishi Unnayan Bank and Bangladesh Development Bank PLC are likely to be selected from this list.
The appointments are being made under a new policy issued by the FID on 18 January this year. The policy requires candidates seeking promotion to MD positions at specialised banks and financial institutions to have at least two years’ experience as a DMD and a minimum of 20 years of service from Grade-9. The previous policy did not require a mandatory two-year tenure as DMD before promotion to MD.
A section of senior banking officials said the policy change, introduced during the closing period of the interim government, has narrowed the pool of eligible candidates for leading state-owned banks. They argued that officials who received faster promotions under political considerations in the past are now in a favourable position as they already meet the two-year DMD requirement.
In contrast, officers promoted to DMD positions after the fall of the Awami League government are effectively excluded from the current selection process despite being considered professionally qualified, they said. They also claimed that many capable bankers who missed timely promotions due to a lack of political connections may now lose the opportunity to become MDs.
Responding to the issue, Additional Secretary of the Financial Institutions Division Md Azimuddin Biswas told TIMES, “Until the policy is amended, the ministry must follow the existing rules. The government may revise the policy if it considers it necessary.”
FID sources said intelligence agencies have already completed background verification of the shortlisted candidates. The ministry aims to complete the appointment process shortly.
Questions over the leadership of state-owned banks have persisted for years. Although reforms have begun across several sectors since the change of government, no major overhaul has yet taken place in the top management of state-owned banks.
Bankers said appointing new MDs alone would not be enough. They argued that the process must ensure transparency, fairness in assessing qualifications and leadership free from political influence, given the role state-owned banks play in financing government development programmes, protecting depositor confidence and maintaining credit discipline.
Executive Director and spokesperson for Bangladesh Bank Arief Hossain Khan said the appointment of MDs of state-owned banks falls under the jurisdiction of the Ministry of Finance.
“The government may introduce changes or proceed with appointments under the existing policy. However, Bangladesh Bank has always expected the appointments to be made through a transparent process,” he said.
