Union Bank terminated 262 trainee officers on November 17, with its board citing cost reduction as the reason. Allegations suggest these appointments, made in February, were directed by the founder of a S Alam Group without recruitment tests. Following the restructuring of its board by Bangladesh Bank on August 27, the institution aims to address mismanagement tied to prior leadership. Most of the dismissed officers were from Chattogram, the founder’s base, highlighting potential favoritism in hiring practices.
Similarly, First Security Islami Bank “withdrew” 194 officials, including branch managers, for alleged involvement in illicit loans connected to the same conglomerate founder. The bank’s new board, installed after the August government change, discovered irregularities in 24 branches, including loans issued under false identities. These measures reflect an effort to restore regulatory compliance and financial stability in the wake of a liquidity crisis attributed to mismanagement and policy violations under previous ownership.
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