Bangladesh Bank Reshuffles Premier Bank Board Over Governance Concerns

Bangladesh Bank has dissolved the board of directors of Premier Bank and appointed a new one, citing poor governance and irregularities in management.

The decision came after the central bank identified shortcomings in corporate governance, weak loan discipline, and overall mismanagement. Under the Bank Company Act of 1991, Bangladesh Bank has the authority to reconstitute any bank’s board if its operations are deemed harmful to the institution, its depositors, or the wider public interest.

Officials stated that the move aims to strengthen accountability, transparency, and proper loan practices in the banking sector.

Mohammad Shahriar Siddiqui, acting spokesperson of the central bank, confirmed the development to the media.

In the new board, Arifur Rahman has been named director on behalf of the sponsor shareholders. Independent directors include former Bangladesh Bank executive director Md. Forkan Hossain; ex–United Commercial Bank additional MD Syed Faridul Islam; former Bank Asia deputy MD Md. Sazzad Hossain; Dhaka University IBA professor Sheikh Morshed Jahan; and Chartered Secretary M. Nurul Alam.

The dissolved board had been led by chairman Mohammad Imran Iqbal and vice-chairman Jamal G. Ahmed. Other members were Abdus Salam Murshedy, Shafiqur Rahman, Shaila Shelley Khan, Yeh Cheng Min, and Mohammed Ahmed Ali.

Since August 2024, the central bank has taken similar action in 15 commercial banks, including Islami Bank, Social Islami Bank, IFIC Bank, UCBL, Exim Bank, First Security Islami Bank, Al-Arafah Islami Bank, Global Islami Bank, Union Bank, National Bank, NRB Bank, NRBC Bank, Meghna Bank, and BCBL.

Meanwhile, BRAC Bank, Islami Bank, and Dutch-Bangla Bank have recently been identified as leading the sector in deposit growth.