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Customers of Islami Banks at a meeting on Saturday called for the reconstitution of the board of Islami Bank Bangladesh PLC, urging the reinstatement of its previous directors.
They strongly condemned the takeover of Islamic banks, which occurred with direct government assistance, leading to significant financial losses.
The businessmen demanded that the funds allegedly misappropriated by the S Alam Group from Islami Bank be recovered and that those responsible be brought to justice.
These statements were made during a customer gathering of Sharia-based Islamic banks held on Saturday morning at a local hotel.
The event was attended by prominent figures, including renowned economist and educationist Professor Abu Ahmed, who served as the chief guest, and Mohammad Abdul Majid, a former government secretary and past chairman of the National Board of Revenue (NBR), who participated as a guest of honour. The event was presided over by Mr. Abdul Haque, a former director of FBCCI and a leading businessman in the country's automobile sector.
The meeting formed a 15-member customer forum, with Mr. Abdul Haque, a former director of FBCCI, as the convener.
This forum will work to protect the interests of Islami Bank customers and act as a watchdog to ensure that the bank is being managed in the best interests of its customers.
In his address as chief guest, Professor Abu Ahmed emphasized the importance of restoring discipline within Islami Bank, urging its customers to be vocal in advocating for this change.
He stressed that individuals with a strong Islamic ethos should be involved in the management and operations of Islamic banks.
Professor Abu Ahmed said foreign investors who initially joined the bank shared this goal. However, when they witnessed the wrongful takeover of the bank and the departure of Islamic principles, they too withdrew their support.
Professor Ahmed urged the governor to reconstitute the board of the Islamic Bank with qualified and efficient individuals, specifically those who were on the board before 2017 and those who embody Islamic values.
He criticized the Bangladesh Bank's efforts to keep the bank afloat by printing money, warning that this approach is unsustainable.
“To restore customer trust, it is essential to ensure the safety of deposits. If customers see that their deposits are secure, they will begin investing in the Islamic bank again, regardless of the profit margins.”
Mohammad Abdul Majid said the severe damage inflicted on the country's SME sector and overall economy due to the forcible takeover of Islami Bank and the consequent financial losses.
He noted that the rate of remittance receipts had also dropped significantly.
Majid underscored that customers are the bank's greatest asset and that their demand for holding the S Alam Group accountable for the alleged embezzlement of funds should be met.
Customers from various parts of the country participated in the meeting.
They expressed concern that currently, no banks accept Islamic bank LCs, which they described as alarming and a problem that needs to be addressed.
They recalled a time when the mention of the Islamic Bank was sufficient for LCs to be accepted without question.
Customers advocated for reinstating the previous management to restore the Islamic Bank to its former glory, asserting that the bank has seen no success in the last 16 years, only a history of looting.
They criticized the current Chairman Obayed Ullah Al Masud, alleging that he is experienced in interest-based banking and is therefore unfit to lead an Islamic Bank.
They also accused him of being a beneficiary of the previous government and a paid agent of S Alam.
The speakers were critical of the newly formed board, asserting that it will not bring any improvement under the current structure imposed by Bangladesh Bank.
The customers pointed out that nearly 100 million people in the country are directly or indirectly connected to Islamic banks, with around 8 million expatriates from the Middle East sending remittances through these banks.
The speakers called for the rescheduling of bank loans over a 10-year period for customers who have suffered financial losses in recent years.
They also proposed that directors be selected from among the bank's customers to serve on Islami Bank's board
at the conclusion of the meeting, a memorandum was handed over to the Governor, demanding the reconstitution of the board.
The memorandum emphasized that the bank is safe only in the hands of those who originally established it.