B Mirror Report: Bangladesh Bank has abruptly removed Salah Uddin from his post as administrator of Social Islami Bank Limited (SIBL) and appointed Executive Director Md. Abul Basar as the new administrator, triggering widespread discussion and speculation in the banking sector.

According to an internal circular issued on Monday (May 11), Salah Uddin has been transferred to the Rangpur office of Bangladesh Bank. His assistant, Additional Director Rashedul Islam, has also been removed from SIBL and reassigned to the Central Support Department (CSD) at the central bank’s head office.

Salah Uddin was appointed as SIBL administrator in the first week of November 2025, with Rashedul Islam as his deputy. Their removal within six months has raised questions within financial circles, although Bangladesh Bank maintains that the transfer is routine.

The circular did not specify any reason for the reshuffle. However, sources familiar with the matter suggest that the decision may be linked to pressure from several large business groups seeking special banking facilities. Allegations have also surfaced that the transfer was influenced by a deputy governor and an executive director of the relevant department claims that remain unverified.

Multiple sources further claim that some large business groups had been pressuring the administrator for interest waivers, loan rescheduling beyond regulatory limits, and other policy benefits. It is alleged that Salah Uddin resisted approving such irregular requests, leading to tensions with influential quarters.

However, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan dismissed the speculation, calling the transfer a routine administrative decision. He said the reassignment of officials after a certain period, in line with policy, is a standard practice and should not be viewed otherwise.

“Salim Uddin’s transfer is part of the regular rotation policy. There is no other reason behind it,” he told reporters, rejecting the rumours as baseless.

SIBL is part of the recently formed merged entity “Combined Islami Bank,” created after the consolidation of five troubled banks EXIM Bank, Social Islami Bank, First Security Islami Bank, Union Bank, and Global Islami Bank following their failure to repay depositors’ funds.

The merger process, carried out under a broader banking sector reform initiative, brought the institution under state ownership. The new bank began operations with a capital base of Tk 35,000 crore, including Tk 20,000 crore provided by the government.

Authorities have also arranged repayment mechanisms for depositors, including Tk 12,000 crore from deposit insurance funds to cover up to Tk 2 lakh per depositor among an estimated 7.8 million account holders.