Dhaka,  Friday
19 April 2024

BB orders Standard Bank to reinstate MD Habibur

Staff Reporter 

Published: 08:56, 3 April 2024

BB orders Standard Bank to reinstate MD Habibur

Photo : Collected

The Bangladesh Bank on Monday directed Shariah-based Standard Bank to reinstate its Managing Director (MD) Md Habibur Rahman, who resigned in February. 

It gave the order after an investigation into a complaint that Habibur had resigned under the pressure of the board of directors. The complaint was filed by seven directors of the bank.

Sources at the Bangladesh Bank said a board meeting of Standard Bank was held on February 29 where several allegations were brought against Habibur and he was asked to resign. 

Then on March 3, Habibur submitted a three-month leave notice to the bank’s board. He later submitted his resignation. The board accepted his resignation, and Mohon Miah was made acting MD.

Earlier, the board of directors brought several allegations against Habibur, including money laundering. The bank's Vice-Chairman Kazi Khurram Ahmed even warned that the board of directors could face police harassment because of the allegations against Habibur.

However, some directors present at the board meeting complained to the Bangladesh Bank that Habibur was forced to resign. Following the complaint, the central bank summoned the bank's Chairman Qazi Akramuddin Ahmed and his son Khurram. A central bank source said the two were reprimanded there. The central bank also asked them to re-appoint Habibur.

Later, the matter was raised at the bank’s board meeting on March 31, said a source at Standard Bank. However, the board did not say anything about when he would be reinstated. It was said that a decision would be made soon.

When asked about this, Habibur told The Daily Messenger, “I heard that such instructions had been given by the Bangladesh Bank, but no letter has been given to me yet.” 

“I was unfairly forced to resign. The Bangladesh Bank has done justice to me. But I do not know why the board of directors is delaying the process,” he added. 

Several sources at the bank said Habibur was appointed as the managing director only a year ago. At that time, only Khurram proposed his appointment. But within a year and a month, Khurram attempted to remove him allegedly because of Habibur’s affiliation with Jamaat-e-Islami.

It happened on February 29. At the 388th board meeting of the bank on that day, after the regular meeting, Khurram raised the proposal to remove Habibur. The other directors were surprised by this.

Habibur joined as the managing director and chief executive officer on February 1 last year. Earlier, he served as Additional Managing Director of Union Bank and Southeast Bank. Before that, he served as Deputy Managing Director of NCC Bank and Jamuna Bank. In addition, he served in various positions at Prime Bank, Mercantile Bank, and Shahjalal Islami Bank in his long career of 33 years.