Barrister Khairul Alam Chowdhury, the chairman of Arab Bangladesh (AB) Bank, has stepped down from his position. His resignation occurred during a board of directors meeting on Thursday, May 1, and was attributed to personal reasons.

According to a bank source, there are ongoing discussions to appoint a former managing director as the new chairman, who has held significant roles in various domestic and international banks. Previously, Muhammad A (Rumi) Ali, the former chairman, also resigned, leading to Barrister Khairul Alam assuming the chairmanship of AB Bank in August 2022. He is recognized as a senior lawyer at the Supreme Court of Bangladesh.

Reports indicate that many of AB Bank’s major clients, including Sikder Group, Asian City, Buildtrade, Mahin Group, Aman Group, Ershad Brothers, and several entities associated with the controversial health sector contractor Motazzerul Islam (alias Mithu), are failing to make regular loan payments. Additionally, the bank is struggling to recover loans from Beximco Group and has also faced defaults from the defunct mobile operator Citycell, owned by Morshed Khan. Consequently, the bank is experiencing various instabilities, and a representative from Bangladesh Bank is currently on its board.