Islami Bank Executive Committee Chairman Md Abdul Jalil has been dismissed from his position by the bank's board of directors amid allegations of extending loans to a favoured institution and appointing his son-in-law as the Managing Director (MD) of an associated subsidiary.
Abdul Jalil, a former banker, was appointed as an independent director and later as the EC Chairman after the fall of the Awami League government.
According to sources within the bank, he allegedly exploited his position to engage in irregular practices.
In response to these allegations, he denied any wrongdoing, refuting claims that he favoured a specific company or appointed his son-in-law to a key position.
On 10 December, the EC approved a loan of Tk250 crore to "True Fabrics Limited," a company identified by the Credit Information Bureau (CIB) of Bangladesh Bank as a defaulter owing Tk18 crore. This approval was expedited and increased from an initial proposal of Tk225 crore on the verbal instruction of the EC chairman.
The loan distribution was hurriedly executed the day after approval, bypassing standard procedures.
In light of these developments, the bank's board decided to replace Jalil with independent director Muhammad Khurshid Wahab as the new EC chairman.
Abdul Jalil defended his actions, stating that the loan was necessary to keep the factory operational, and denied exerting any undue influence.
He also dismissed claims that he favoured his son-in-law, Mashihur Rahman, who was appointed MD of Islamic Bank Securities, stressing that the appointment was made by the management based on his qualifications.
