Resignation of Social Islami Bank Director Rezaul Haque

Staff Reporter | PNN:

Rezaul Haque, the sole shareholder director and former chairman of Shariah-based Social Islami Bank Limited (SIBL), has resigned from the bank’s board of directors. On Sunday (October 12), he formally submitted his resignation letter to the bank’s chairman.

Sources indicate that Rezaul Haque decided to resign immediately following the government’s announcement regarding the merger of five Shariah-based banks. The merger proposal was approved in a meeting of the interim government’s advisory council last Thursday.

In his resignation letter, Rezaul Haque stated that the independent directors appointed under the Banking Companies Act have no direct interests with the bank. As a result, they have failed to make a positive impact on the bank’s operations.

He wrote, “If the management was returned to the bank’s true founders and shareholders, the institution could have regained stability. However, the current board has not contributed effectively to the bank’s development, aside from attending meetings and drawing salaries.”

Rezaul Haque further complained that the independent directors participated in the Bangladesh Bank’s merger hearings without informing him, which he considered an action outside of their authority.

He revealed that he had served as the chairman of SIBL from 2013 to 2017. During his tenure, the bank was profitable, and in 2016, a 20% cash dividend was paid. However, in October 2017, he claims he was forced to resign “at gunpoint.”

In his words, “After the takeover by S. Alam Group, widespread corruption occurred in the bank. We expected that after the changes, the bank would return to the hands of the real entrepreneurs, but instead, an ineffective board was formed with independent directors.”

Following the instructions of Bangladesh Bank, Social Islami Bank and the other four Shariah-based banks are in the process of merging to create a new Islamic bank. It is speculated that as part of this process, the current board and management of SIBL may soon be dissolved.

Against this backdrop, Rezaul Haque, the founder-director and former chairman, resigned, sparking new discussions in the banking sector.