S.M. Abdul Hamid, a seasoned banker and professional chartered accountant, has been appointed as an independent director of Islami Bank Bangladesh. The decision was taken by Bangladesh Bank, the country’s central bank, following the removal of the previous independent director, Abdul Jalil, amid controversy over non-performing loans and alleged interference in loan-related decisions.
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Focus on Financial Strengthening
Upon assuming his new role, Abdul Hamid stated, “My priority will be to strengthen the bank’s financial health. Bangladesh Bank has highlighted certain key priorities, which I will determine after reviewing the current situation of the bank. I will strive to place the bank in a strong position.”
Bangladesh Bank’s Executive Director and spokesperson, Arifur Rahman Khan, confirmed the appointment, noting, “The central bank deemed it necessary to nominate a new independent director, and this forms part of routine regulatory procedures.”
The regulator has already sent formal communication to Islami Bank regarding the appointment. Abdul Hamid added that although the official letter has not yet been received, the bank has been formally notified of the decision. He is expected to attend his first board meeting following the Eid holidays.
Extensive Banking and Audit Experience
Abdul Hamid brings decades of experience in banking and finance. He previously served as Deputy Managing Director and Chief Financial Officer at IFIC Bank and has held senior positions at Premier Bank. Currently, he is a partner at the auditing firm Islam Zahid & Company, further demonstrating his expertise in financial management, governance, and regulatory compliance.
The former independent director, Abdul Jalil, was removed after allegations surfaced regarding attempts to influence loan-related decisions within the bank. While the investigation led to his removal, his name reportedly remains listed on the bank’s website.
Current Board Composition
Islami Bank Bangladesh currently has five directors, all appointed as independent directors by Bangladesh Bank. Following the divestment of S. Alam Group, no shareholder directors remain on the board, signalling a transition towards fully independent governance.
| Director Name | Role | Appointment Authority |
|---|---|---|
| S.M. Abdul Hamid | Independent Director | Bangladesh Bank |
| Director 2 | Independent Director | Bangladesh Bank |
| Director 3 | Independent Director | Bangladesh Bank |
| Director 4 | Independent Director | Bangladesh Bank |
| Director 5 | Independent Director | Bangladesh Bank |
This composition ensures regulatory oversight and independence from former controlling shareholders, aiming to strengthen the governance framework and accountability of the bank.
Outlook and Priorities
Abdul Hamid’s appointment comes at a critical juncture for Islami Bank, which has faced scrutiny over non-performing loans and governance challenges. His immediate priorities include reviewing the bank’s financial health, ensuring compliance with regulatory standards, and advising on strategic initiatives to restore stakeholder confidence.
By appointing a professional with extensive banking and auditing experience, Bangladesh Bank aims to enhance transparency, safeguard depositor interests, and reinforce sound corporate governance. The central bank’s proactive role in appointing independent directors underscores its commitment to strengthening the Shariah-compliant banking sector, while mitigating both financial and operational risks.