Bangladesh Bank orders mandatory leave for MDs of six banks, including four controlled by S Alam

In a bold move that has raised eyebrows in the banking sector, Bangladesh Bank has ordered the managing directors (MDs) of six banks, including four that are connected to businessman S Alam, to take mandatory leave. 

The decision was announced on Sunday, January 5, 2025.

The banks involved in this directive are:

• First Security Islami Bank
• Social Islami Bank
• Global Islami Bank
• Union Bank
• Exim Bank
• ICB Islami Bank

The first bank to act on this order was First Security Islami Bank. In a decision made during an emergency board meeting on Saturday, January 4, the bank‍‍`s MD, Syed Wasik Mohammad Ali, was sent on leave for three months. 

During his absence, the bank‍‍`s Additional Managing Director, Abu Reza Mohammad Yahya, will take over as the Acting MD.

The move comes after an urgent meeting held by Bangladesh Bank with the board members of these six banks on Thursday, January 2. 

Following the discussions, the central bank instructed that top officials, including those closely tied to S Alam, be removed to allow further investigation. 

Bangladesh Bank’s goal is to ensure a thorough probe and take appropriate action based on the findings.

This development has caused quite a stir in the country’s banking industry, with many wondering what the next steps will be as investigations unfold.