Appointment of 6 Government Bank MDs cancelled
September 20, 20243 Mins Read
Jumbangla Desk: The government has canceled the contractual appointment of MD and CEO of the country's state-owned Sonali, Rupali, Agrani, Janata, BDBL and Basic Bank. On Thursday, the Financial Institutions Department of the Ministry of Finance sent six separate letters in this regard to the chairman of the banks. This was confirmed by Additional Secretary (Ongoing Charge of Secretary) Amal Krishna Mandal, Financial Institutions Department.
Bangladesh Bank
Managing Director (MDO) and Chief Executive (CEO) of Sonali Bank. A letter regarding cancellation of appointment of Afzal Karim has been sent to the chairman of the bank. It is said that Md. The Government consented to cancel the remaining term of the contractual appointment made by the Board of Directors with Afzal Karim. The Board of Directors is requested to take further legal action regarding the cancellation of the remaining term of his contractual appointment as per the agreement executed by the Board of Directors under the Bank Companies Act.
According to sources in the Financial Institutions Department, Afzal Karim was appointed as the MD of Sonali Bank for three years in August 2022. As such, his term was till August next year. A letter was also sent to the chairman of the banks, canceling the contractual appointments of the MDs and CEOs of Rupali, Agrani, Janata, BDBL and Basic Bank citing almost the same comment.
The government appoints MDs and CEOs of state-owned banks on three-year contracts. On May 3, 2023, he was appointed as the managing director of Janata Bank. Abdul Jabbar. Mohammad Jahangir of Rupali Bank was appointed on August 28, 2022. And Agrani Bank Managing Director Morshedul Kabir was appointed on August 14, 2022. In addition to Basic Bank. Anisur Rahman and Habibur Rahman Ghazi were appointed as MD and CEO of Bangladesh Development Bank (BDBL).
Officials of the Financial Institutions Department said that in view of the instructions of the interim government as part of banking reform, initiatives have been taken to cancel the remaining term of contractual appointment of MDs and Chief Executive Officers (CEOs) of six banks. CEOs and MDs join these banks through an agreement executed with the banks' board of directors. Therefore, the board of directors or the chairman of the board of the banks also have the power to cancel the remaining period of the contract of the MDs.
They said that there are various conditions including giving notice to the MDs in case of cancellation of the contract based on contractual appointment, according to those conditions the contract of appointment with them should be cancelled. The Chairman will implement it through the Company Secretary. That is why bank chairmen have been instructed to cancel the appointment of MDs. The Financial Institutions Department will appoint new MDs after the appointment of existing MDs is cancelled.
The policy makers of the interim government feel that it will not be possible to reform the banking sector by retaining the existing MDs. Besides, there will be no real picture of the financial loss of the banks while they are in charge. So by canceling their appointment - they feel that it is necessary to appoint a new MD.
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Bangladesh Bank has formed a task force to reform the banking sector. Six people experienced in the financial sector have been appointed as members. The task force will be coordinated by Central Bank Governor Dr. Ahsan H. Mansoor. Besides taking various steps in banking reform, this task force will publish a white paper.
