Islami Bank chairman Jubaidaur Rahman resigns

Professor M Jubaidaur Rahman, chairman of Islami Bank Bangladesh, one of the country's largest private banks, has resigned. He submitted his resignation letter to Bangladesh Bank on Sunday, May 24.

Bangladesh Bank had appointed him as an independent director of Islami Bank in July 2025. He later assumed the role of chairman. At that time, the governor of Bangladesh Bank was economist Ahsan H Mansur.

According to multiple sources at Bangladesh Bank and Islami Bank, after the BNP government took office and Mostakur Rahman became governor, disagreements arose between senior officials of Islami Bank and Bangladesh Bank officials over various decisions. Subsequently, Chairman Jubaidaur Rahman went abroad on one and a half months' leave on condition of attending meetings online. The bank's Managing Director Omar Faruk Khan was also sent on leave. Their leave was approved at a board meeting on April 12.

A board meeting of Islami Bank was scheduled for Sunday at the bank's head office. However, some customers and employees began demonstrating in front of the head office, demanding that MD Omar Faruk Khan not resign and that Chairman Jubaidaur Rahman step down.

Amid these circumstances, Jubaidaur Rahman submitted his resignation to Bangladesh Bank. Meanwhile, MD Omar Faruk Khan, who is on leave, has also submitted his resignation to the board, a bank source confirmed. However, no decision has been made as the board meeting was cancelled.

The S Alam Group took control of Islami Bank in 2017. After the fall of the Awami League government, Bangladesh Bank removed them and appointed independent directors to the bank.

According to the bank's annual report, Islami Bank's profit stood at approximately Tk 447 crore in 2016, which fell to Tk 137 crore in 2025. During the same period, the defaulted loan rate rose from 4.25 per cent to 49 per cent. Currently, over Tk 92,000 crore in loans are in default at the bank.

Foreign investor share ownership fell from 63 per cent to 17.91 per cent in March 2026. Meanwhile, as approximately 82 per cent of the bank's shares were linked to the S Alam Group, Bangladesh Bank has seized them.