Bangladesh Bank has dissolved the board of Islami Bank, effectively ending the controversial control exerted by the S Alam Group.in 

On Thursday, the central bank's governor, Dr. Ahsan H Mansoor, approved the appointment of five new independent directors to oversee the transition, according to reliable sources in the bank.

The newly appointed independent directors include Obaid Ullah Al Masood, former Managing Director and Chairman of Rupali Bank; Khurshid Wahab, former Executive Director of Bangladesh Bank; Abdul Jalil, former Deputy Managing Director of Al-Arafah Bank; M Masud Rahman, Professor at Dhaka University's Banking Department; and Chartered Accountant Abdus Salam.

This restructuring comes just a day after Governor Mansoor signaled the impending dissolution of the board during a press conference. Given that a majority of Islami Bank’s shares are held by S Alam Group, the reconstituted board will temporarily include an independent director.

All shares linked to S Alam’s interests will be assumed by the government. The group can reclaim its shares only after settling all liabilities. Future appointments of directors will depend on whether the former directors purchase 2% of the bank’s shares.