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Bangladesh Bank has restructured the board of First Security Islami Bank Ltd (FSIBL), ending S Alam Group’s control over the institution. Previously, FSIBL’s board was dominated by S Alam Group members, including its founder, Mohammad Saiful Alam, and several of his relatives. The central bank replaced the 11-member board with a new five-member independent board to safeguard depositor interests and improve governance.
The move follows similar actions taken at Islami Bank, Social Islami Bank, Global Islami Bank, and Union Bank. Abdul Mannan, previously ousted from Islami Bank Bangladesh, has been appointed chairman of FSIBL’s new board. The bank has faced significant challenges, including a deficit of Tk 6,693 crore in its current account with the central bank and a substantial amount of defaulted loans, partly attributed to S Alam Group’s influence. This restructuring aims to stabilize the bank’s operations and restore confidence.
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