The government has cancelled the remaining tenures of the contractual appointments of the managing directors (MDs) and chief executive officers (CEOs) of three state-owned banks Agrani Bank PLC, BASIC Bank PLC and Bangladesh Development Bank PLC (BDBL).

The Financial Institutions Division of the Ministry of Finance issued three separate notifications on Wednesday, September 2, directing the respective banks’ boards of directors to take the necessary legal and regulatory measures.

The three MDs are Md Anwarul Islam of Agrani Bank, Md Kamruzzaman Khan of BASIC Bank, and Md Jasim Uddin of BDBL.

The notifications, signed by Deputy Secretary Afroza Akter Riba, said the government had recommended and consented to terminating the remaining periods of their contractual appointments in accordance with the Bank Company Act and the agreements signed with the respective boards.

The boards have been instructed to complete the subsequent legal and regulatory procedures to formally cancel the appointments.

Banking sector sources said the move is part of a broader initiative to reform the financial sector and bring greater dynamism to the operations of state-owned banks following the political transition.

There have also been allegations that contractual appointments at state-owned banks during the previous government were made on political considerations and to benefit vested interest groups.

Agrani Bank, BASIC Bank and BDBL have been facing various financial challenges for years, including high levels of non-performing loans and capital shortages.

An official of the Financial Institutions Division said management-level restructuring is being pursued to strengthen governance in the banking sector and restore depositors’ confidence.