B Mirror Report: Former Bangladesh Bank Deputy Governor Khurshid Alam has been appointed as the new chairman of Islami Bank Bangladesh PLC, replacing Professor Dr. M. Zubaidur Rahman, according to a circular issued by the central bank on Sunday.

The appointment was announced through a circular from Bangladesh Bank’s Banking Regulation and Policy Department-1, which named Khurshid Alam as an independent director and chairman of the country’s largest Islamic lender.

Earlier in the day, outgoing chairman Professor Dr. M. Zubaidur Rahman submitted his resignation letter to the governor of Bangladesh Bank. He had taken charge as chairman on July 23 last year.

Khurshid Alam previously served as deputy governor of Bangladesh Bank but resigned amid protests by central bank officials following the political changeover and student-led mass uprising after August 5, 2024. At the time, agitating officials demanded the resignation of the governor and four deputy governors appointed on contract. Under mounting pressure, Khurshid Alam and another deputy governor, Kazi Saidur Rahman, stepped down from their posts.

Meanwhile, instability has continued within Islami Bank’s board under the current political environment. The bank’s Managing Director Omar Faruk Khan has already been sent on compulsory leave, while a section of customers has been staging demonstrations demanding that previously accused looters and influential groups not regain control over the bank.

Amid the ongoing unrest, a scheduled board meeting on Sunday was ultimately cancelled.

Banking sector sources said discussions were also underway regarding the possible resignation of Managing Director Omar Faruk Khan, who remains on compulsory leave until May 31. However, contacted in the evening, Omar Faruk denied reports of his resignation, saying briefly, “I did not resign,” before disconnecting the call.

Following the political changes after August 2024, Bangladesh Bank had restructured the board of Islami Bank and appointed Obayed Ullah Al Masud as chairman. He later resigned on July 17 last year after allegations surfaced and bank account information related to him and his family members was sought by authorities. Professor Dr. M. Zubaidur Rahman subsequently assumed the chairmanship.