Several private banks in Bangladesh have reportedly recruited thousands of employees through irregular and unauthorized processes since 2017, allegedly under the patronage of the controversial Chattogram-based conglomerate, S Alam Group. This mass recruitment spree was particularly rampant in banks under the group’s influence, including Islami Bank, Social Islami Bank (SIBL), First Security Islami Bank, Al-Arafah Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank. Sources allege that from 2017 to 2024, S Alam alone recruited over 31,000 individuals, the majority from his home upazila, Patiya, as well as other areas of Chattogram such as Banshkhali.
Following the political regime change on August 5, 2024, prompted by mass protests and student uprisings, banks began a quiet process of strategically terminating these irregularly appointed employees. Rather than public mass firings, banks opted for methods like non-renewal of contracts, failed performance evaluations, and internal reassignments (OSDs) to gradually remove them.
To date, over 3,500 bank officials have been laid off since the shift in political power. Islami Bank Bangladesh Limited (IBBL) has dismissed over 800 employees, while First Security Islami Bank has removed a similar number. Social Islami Bank (SIBL) has terminated 1,038 employees, Union Bank dismissed 400, Al-Arafah Islami Bank laid off 547, and Global Islami Bank has let go of seven staff.
Reports indicate that S Alam Group’s recruitment practices were highly unorthodox, often bypassing any formal job circulars, exams, or document verification. Allegedly, a so-called “magic box” was placed in front of the group’s office in Patiya, where locals could drop off their CVs. Most of the people hired through this method were from Chattogram, with no formal vetting. Between 2017 and August 2024, Islami Bank alone hired 11,000 employees, 7,224 of whom were from Patiya. Previously, only 776 employees of the bank hailed from Chattogram.
Beyond Islami Bank, similar recruitment took place across other S Alam-controlled banks. Sources also claim that one former central bank governor facilitated the group’s control over these banks and helped approve the appointment of another 2,900 individuals without due process.
Following the regime change, Social Islami Bank became the first to initiate dismissals. The bank declined to confirm the jobs of 579 probationary officers, did not renew contracts for hundreds of support staff, and in September 2025, laid off at least 40 senior officials. Altogether, 1,038 staff members have been terminated from the bank.
Most of those dismissed were allegedly hired without any examinations, making their employment contracts legally questionable. As of now, SIBL has around 4,700 employees, with nearly 2,000 from Chattogram. In 2024 alone, 579 new probationary officers were hired without any formal notification, examination, or document verification.
First Security Islami Bank has also dismissed 800 officials. Many of them were allegedly involved in disbursing controversial loans to entities linked to S Alam. In June 2025, the bank conducted a competency test, where 2,800 employees participated. Although most passed, some were removed based on performance. A senior executive said the purpose was to ensure competitiveness and that those failing to meet the standards would be given training opportunities, but if they still failed, the bank could not retain them.
Al-Arafah Islami Bank, meanwhile, has terminated 547 employees who failed a special evaluation test. These exams were conducted after investigations—initiated post-political change—revealed serious irregularities in the bank’s recruitment process. A total of 1,414 employees sat for the test, out of which 547 failed. One dismissed employee told reporters that even though the questions were easy, many failed, showing a lack of training from the bank itself. He argued that the bank cannot shirk responsibility for failing to develop the skills of its own employees.
At Union Bank, 400 employees were let go over 13 months. On November 17, 2024, the board decided to terminate 262 officers hired in February that year without any examination, based on a list provided by S Alam Group. Most of those terminated were trainee assistant officers or trainee cash officers from various Chattogram upazilas. The termination letters also contained a clause holding them liable if the bank suffers any damage due to their past actions. In two further phases, another 138 employees were dismissed.
In contrast, Global Islami Bank dismissed only seven employees. Its chairman, Nurul Amin, told the press that while many banks undertook layoffs following the political shift, Global Islami Bank did not engage in widespread terminations. He added that according to Bangladesh Bank’s guidelines on bank mergers, no employee should be dismissed within the first three years of a merger.
Islami Bank Bangladesh, the largest private Shariah-based bank, has become the most talked-about case. Over 800 employees have already been terminated, including 600 messenger-level employees whose annual contracts were not renewed. These positions were mostly filled by residents of Chattogram during S Alam’s takeover of the bank. Additionally, the bank has initiated a skills assessment for 5,385 irregularly appointed staff, of whom 4,953 did not attend the evaluation held last Saturday. They have now been marked as OSD (Officers on Special Duty). The bank also dismissed 200 employees for disciplinary reasons and allegedly for making “offensive” posts on social media. Following this, groups of former employees staged protests in Patiya, which were dispersed by police.
Islami Bank currently has around 21,000 employees, of whom 11,000 were hired between 2017 and 2024—most without any formal recruitment process. Of these, 7,224 are from Chattogram, including 4,524 from S Alam’s home upazila of Patiya.
Dr. Kamal Uddin Jashim, Additional Managing Director of Islami Bank, told Kalbela that irregular recruitment took place between 2017 and 2024. That’s why they held a performance evaluation in association with IBA, University of Dhaka. Those who did not participate were made OSDs. Some were also terminated due to questionable academic qualifications, particularly from BGC Trust and Port City University, which allegedly refused to verify their certificates. Dr. Jashim added that 88% of participants passed the assessment, and the remaining 12% would be given training and reassessed before any final decisions.
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan told Kalbela that banks can take action against those who fail to attend or perform in such evaluations. However, affected employees also have the right to seek redress in court. In that case, the banks can defend themselves by citing Bangladesh Bank’s directives.
This wave of dismissals reflects a historic purge of politically-influenced appointments in the banking sector. While it marks an effort to restore merit-based recruitment, it also raises questions about the ethics and legality of both the initial hiring spree and the mass terminations that followed. The impact of these moves could have long-term implications on employment, institutional integrity, and regional representation in Bangladesh’s banking sector.
