Dhaka, August 28 — The Bangladesh Bank has dissolved the boards of directors of Global Islami Bank and Union Bank, both owned by the S Alam Group, a conglomerate known for its close ties to the former Awami League government. The central bank has also restructured the board of United Commercial Bank (UCB), appointing five new directors.

The central bank's decision was conveyed through two separate orders on Tuesday, aimed at safeguarding depositor interests, ensuring good governance, and stabilizing the banking sector. The directive states that new boards have been formed to address concerns over governance and financial stability within these institutions.

New Board of Directors for Global Islami Bank:

Chairman: Mohammad Nurul Amin, former Managing Director of NCC and Meghna Bank, and former Chairman of the Association of Bankers Bangladesh (ABB).

Independent Directors:

  - Jamal Molla, former Executive Director of Bangladesh Bank.

  - Nurul Islam Khalifa, former Deputy Managing Director (DMD) of Islami Bank.

  - Abu Hena Reza Hasan, Professor in the Department of International Business at Dhaka University.

  - Mu. Mahmud Hossain, Chartered Accountant.

New Board of Directors for Union Bank:

Chairman: Farid Uddin Ahmed, former Managing Director of Islami Bank.

Independent Directors:

  - Humayun Kabir, former Executive Director of Bangladesh Bank.

  - Mohammad Saiful Alam, former DMD of Rajshahi Agricultural Development Bank.

  - Shahidul Islam Zahid, Professor in the Department of Banking and Insurance at Dhaka University.

  - Sheikh Zahidul Islam, Chartered Accountant.

Both Global Islami Bank and Union Bank have faced criticism and scrutiny over loan irregularities, with a significant portion of the loans turning into non-performing assets. Most of the loans were reportedly issued to entities associated with the S Alam Group, which has allegedly misappropriated thousands of crores of taka through these financial dealings.

Restructured Board of United Commercial Bank (UCB):

Shareholder Directors:

  - Sharif Zaheer

  - Md. Tanveer Khan

Independent Directors:

  - Dr. Sajjad Hossain, former Executive Director of Bangladesh Bank.

  - Yusuf Ali, former DMD of Agrani Bank.

  - Obaidur Rahman, Chartered Accountant.

The restructuring of UCB’s board has effectively removed former Land Minister Saifuzzaman Chowdhury Javed’s influence over the bank. After the Awami League government fell on August 5, Javed’s wife, Rukhmila Zaman, was ousted as chairman of the bank, and her sister, Rokhsana Zaman Chowdhury, was appointed in her place. Amid discussions of further changes, Dr. Aparup Chowdhury, a former secretary and independent director, was appointed as chairman, with Bashir Ahmed taking over as chairman of the executive committee.

The Bangladesh Financial Intelligence Unit (BFIU) has reportedly uncovered assets worth thousands of crores in various countries linked to Javed and his wife. Their accounts have been frozen, and legal proceedings are said to be underway.

These actions by the Bangladesh Bank are part of a broader effort to enhance transparency and governance in the banking sector, following the recent political shift in the country.