Written by The Banking Post
Bangladesh Bank has reconstituted the board of Al-Arafah Islami Bank, paving the way for the lender’s founding sponsors to return to its management in the latest step in the banking sector’s restructuring.
The central bank on Wednesday appointed 14 new directors representing the bank’s original sponsors and informed the bank’s managing director of the decision through an official letter.
Bangladesh Bank Executive Director and spokesperson Arif Hossain Khan confirmed the board restructuring.
“The bank’s financial condition has improved compared to before, so it has been handed back to its founding sponsors.”
He said the central bank dissolved the boards of several banks following the political transition in 2024. However, in many cases, the original sponsors could not be located or were unavailable to resume control.
“The founding sponsors are available, so the bank has been returned to them.”
The newly reconstituted board includes Badiur Rahman, Salim Rahman, Ahamedul Haque, Rafiqul Islam, Imadur Rahman, Nazmul Ahsan Khaled, Khalilur Rahman, Anowar Hossain, Abdus Salam, Liakat Ali Chowdhury, Enayet Ullah, Mahbub Ahmed as nominee director of KDS Garments, Farid Uddin Ahmed as nominee director of KDS Textiles, and Sharif Uddin Taslim as nominee director of KY Steel Mills.
According to the Bangladesh Bank letter, the independent directors appointed earlier will continue to serve on the board.
The central bank also directed that Khalilur Rahman must resign from the boards of Pragati Life Insurance and Pragati Insurance and notify Bangladesh Bank before joining the Al-Arafah Islami Bank board, in compliance with the Bank Company Act, 1991.
