Appointment of MD of 6 state-owned banks canceled
September 19, 20243 Mins Read
Jumbangla Desk: The government has canceled the contractual appointment of managing directors (MD) of six banks including state-owned Sonali, Rupali, Agrani, Janata, BDBL and Basic Bank with the aim of reforming the banking sector.

Bank

The Financial Institutions Department of the Ministry of Finance has issued six separate notifications in this regard on Thursday (September 19). The chairman of six banks has been informed about the cancellation of the contract with the MD. However, no decision has been taken yet regarding the appointment of a new managing director.

The removed bank MDs are Sonali Bank MD. Afzal Karim, MD of Janata Bank. Abdul Jabbar, MD of Agrani Bank. Murshedul Kabir, MD of Rupali Bank Mohammad Jahangir, MD of Basic Bank. Anisur Rahman and Bangladesh Development Bank (BDBL) MD. Habibur Rahman Ghazi.

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. In August 2022, Afzal Karim was appointed as the MD of Sonali Bank for three years, according to sources in the Financial Institutions Department. As such, his term was until August next year.

He was told in the letter, Md. The Government consented to cancel the remaining term of the contractual appointment of 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.

A letter was also sent to the chairman of the banks, canceling the contractual appointment of the MDs and CEOs of Rupali, Agrani, Janata, BDBL and Basic Bank citing almost the same comment.

Incidentally, the government appoints MDs and CEOs of state-owned banks on the basis of 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 Bangladesh Development Bank (BDBL) Habibur Rahman Ghazi were appointed as MD and CEO.

Officials of the Financial Institutions Department said that in view of the instructions of the interim government as a part of banking reforms, initiatives have been taken to cancel the remaining term of the 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 the contractual appointment letter, the appointment contract with them should be canceled by following those conditions. The Chairman will implement it through the Company Secretary. That's 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.