Special Tribunal Demanded to Try Islami Bank Looters Customers' Forum Holds Press Conference

The Islami Bank Customers' Forum (also known as the Conscious Consumer Forum) has demanded the formation of a special tribunal to try those involved in looting and destabilizing Islami Bank Bangladesh PLC.

Speaking at a press conference at the Dhaka Reporters Unity (DRU) auditorium in Segunbagicha on Saturday, the forum's president, Nurun Nabi Manik, outlined a 7-point charter of demands. The group demanded the immediate recovery of laundered money, payment of the bank's outstanding liabilities, the resignation of newly appointed Chairman Md. Khurshid Alam, and the reinstatement of Managing Director Md. Omar Faruk Khan. The forum warned of tougher programs if their demands are not met.

The customers' platform has been staging protests since June 1. They claimed that public confidence has severely shaken due to recent contradictory statements from high-ranking government and regulatory officials regarding the bank's liquidity health. According to the forum, misleading assurances in the National Parliament and conflicting guidance from the central bank have triggered panic, forcing anxious depositors to withdraw their funds.

Meanwhile, the Association of Bankers, Bangladesh (ABB) met with the central bank governor last week to express deep concern over the bank's ongoing instability. The governor has urged depositors not to panic.

In a bid to manage the massive wave of withdrawals, Islami Bank management recently contacted the central bank seeking a emergency liquidity support loan of Tk 10,000 crore. Sources report that depositors withdrew over Tk 7,000 crore from the bank immediately following the Eid holidays alone.

Islami Bank’s financial distress traces back to 2017 when the controversial S Alam Group took control of its board, leading to widespread financial irregularities, aggressive loan masking, and corruption that became fully apparent by 2022. While the bank saw a temporary stabilization in liquidity following the political transition last August, the recent controversial appointment of former central bank deputy governor Md. Khurshid Alam as chairman has reignited protests by bank customer groups.