Amid ongoing discussion and criticism surrounding allegations of loan default involving the newly appointed Chairman of Islami Bank Bangladesh, Md. Khurshid Alam, Bangladesh Bank has provided an official explanation on the matter. The central bank stated that Khurshid Alam is not personally a loan defaulter; rather, a company owned by his wife has defaulted on a loan.
On Tuesday, Bangladesh Bank spokesperson and Executive Director Arif Hossain Khan told journalists that a company had taken a loan of approximately Tk 3 crore from First Security Islami Bank. One of the joint owners of that company is Khurshid Alam’s wife. Although the loan later became classified as defaulted, the responsibility does not directly fall on Khurshid Alam.
He said that the loan was taken in the name of a company, and Khurshid Alam himself is not the borrower. Therefore, it is not correct to portray him as a loan defaulter.
Meanwhile, a past disciplinary action involving Khurshid Alam has also resurfaced in public discussion. During his tenure at Bangladesh Bank’s Rangpur office, allegations of financial irregularities were raised against him. Following an investigation, administrative action was taken against him in 2018, and his annual salary increment was suspended for two years.
However, according to the current position of Bangladesh Bank, incorrect or incomplete information had been presented against him at that time. The spokesperson said that the matter was later assessed differently, and as a result, he was subsequently promoted to the positions of Executive Director and Deputy Governor.
Regarding the controversy surrounding his appointment as Chairman of Islami Bank, Bangladesh Bank stated that the appointment decision was made after due consideration. There are no plans to change the decision due to pressure, criticism, or protests.
Arif Hossain Khan said that if an institution’s decisions are changed based on pressure from various groups, it may create complications in managing the institution in the future. Therefore, Bangladesh Bank will remain firm on its policy decisions.
He also stated that regarding permission for the virtual meeting of Islami Bank’s Board of Directors, there is provision for holding online meetings under special circumstances, and Bangladesh Bank has granted such permission. No existing regulations have been violated in this regard.
It is worth mentioning that discussions are ongoing in various circles regarding Khurshid Alam’s past administrative punishment and the recent loan default controversy. However, Bangladesh Bank has clearly stated that the information being circulated portraying him as a loan defaulter is not consistent with reality.
