Since many experienced bankers who have held the position of MD for a long time will be retiring due to age, new faces are taking over the Managing Director (MD) positions in about a dozen private sector banks. These include the MDs of BRAC, Dutch-Bangla, MTB, Eastern, and Midland Bank. Additionally, the MDs of six banks that are failing because of irregularities have been sent on mandatory leave, and it is possible that they will not return from their leave, meaning they may have to retire before their term is up.

As a result, ten to twelve banks will see new faces overall. This information was disclosed after consulting with the banks.

The Bangladesh Bank regulation states that MDs may serve for a maximum of 65 years, even if bankers have a 59-year service limit. To become an MD, a banker must be older than 45 and have 20 years of experience.

Entrepreneurs looking for qualified MDs

While earlier bank owners could use their influence to make many incompetent and corrupt people MDs, now the central bank is not giving that approval. Earlier, people like the much-discussed Prashant Kumar (PK) Halder and the controversial ABM Mokammel Haque Chowdhury were able to become MDs. Now, Bangladesh Bank has made new policies to prevent bankers like them. Now, in addition to guaranteeing the fulfillment of the bank’s business goals, one has to go to the central bank and take an oral examination. And the term of appointment is three years each time. Earlier, Bangladesh Bank used to approve five-year appointments at a time.

People involved in the sector said that although many are interested in taking up the post of MD due to the hefty salary and other benefits and power, only a few bankers get the opportunity. Now, most of the MDs of private banks started their careers through foreign banks. In addition, many of the DMDs now start their careers in foreign banks. They also want to take up top positions in banks.

It has been learned from talking to entrepreneurs of some private banks that the banking business has been challenged due to various irregularities and frauds. For this reason, everyone is now looking for people with good reputations as well as skilled bankers for the post of MD. But there are not many such officers in the country’s banks. Many are in touch with people who are Bangladeshi bankers but are working in high positions in foreign banks. In the meantime, Osman Ershad Faiz has joined Eastern Bank (EBL) as additional MD. He was the co-founder of Asia FIIT, a Singapore-based international banking and fintech consultancy firm. Before that, he was the MD and Chief Operating Officer of Standard Chartered Singapore. Similarly, discussions are underway to make a person who was the Chief Executive of Standard Chartered Bank’s Bangladesh operations the MD of a bank in the country.

Banks where new faces will come

It has been learned that Dutch-Bangla Bank MD Abul Kashem Md. Shirin’s term will end on February 6 next year. He took over as the MD of the bank in 2016. Midland Bank MD Ahsan-Uz Zaman will end his term on February 24 of the same year, having held the same position since 2014.

BRAC Bank MD Salim R. F. Hossain’s term will end on March 4 of next year. He was the MD of financial institution IDLC Finance from 2010 to October 2015. He joined BRAC Bank as MD in the same month. Eastern Bank MD Ali Reza Iftekhar will end his term on April 19 of next year. He has held this position since 2007.

Mutual Trust Bank (MD) Syed Mahbubur Rahman’s term will end on February 16, 2027. He has been the MD since 2010, and was previously at BRAC Bank and Dhaka Bank. Among the private bank MDs, he has been the most vocal against various irregularities and corruption in the banking sector in the last 15 years. These top executives who are ending their terms were or are leading the Association of Bankers Bangladesh (ABB), an organization of MDs of the banking sector. They are also known as influential executives in the banking sector. They have a role in formulating various policies and laws in the banking sector.

In addition, the term of Community Bank MD Moshihul Haque Chowdhury has already ended. The process of appointing a new MD is underway in the bank. The term of Citizens Bank MD Mohammad Masum ended on February 27. The board of directors of Citizens Bank has decided to appoint Alamgir Hossain, Deputy Managing Director (DMD) of Bank Asia, as MD in his place. Now, if Bangladesh Bank approves it, the appointment will be final. Sheikh Mohammad Maruf joined Dhaka Bank as MD in October last year. Earlier, he was the additional MD of City Bank. It is being said that many of the vacant MD positions of the banks will have to be filled by officers who have additional MDs.

Meanwhile, foreign auditors started auditing six banks weakened by irregularities in January. For this, the MDs of these banks have been sent on a three-month compulsory leave. The six banks are First Security Islami, Social Islami, Global Islami, Union, Exim and ICB Islami Bank. Among them, former executive director of Bangladesh Bank Md. Humayun Kabir has joined as MD of Union Bank. The bank’s board of directors has proposed the name of former executive director of the central bank Anwarul Islam as MD of ICB Islami Bank. M Akhtar Hossain and Abdul Aziz have joined as additional MDs of Exim Bank. Both of them were working at Shahjalal Islami Bank.

When asked, Dutch-Bangla Bank MD Abul Kashem Md. Shirin told Media, “My term as MD will end next year. Before that, I want to organize the bank further and put it on a solid foundation.”