TBT DESK: Prof M Jubayedur Rahman has resigned as chairman of Islami Bank Bangladesh PLC, marking a significant leadership change at the country’s largest Islamic lender amid reported disagreements over bank management and governance.

Jubayedur Rahman submitted his resignation letter to the Bangladesh Bank on Sunday, according to central bank officials.

He was appointed as an independent director of Islami Bank by Bangladesh Bank in July 2025 and subsequently elected chairman following a major restructuring of the bank’s board. At the time, economist Ahsan H Mansur was serving as governor of the central bank.

Officials familiar with the matter said differences reportedly emerged between senior Islami Bank executives and Bangladesh Bank officials after the BNP-led government assumed office and Mostaqur Rahman took charge as governor.

Sources said Jubayedur Rahman had travelled abroad on around one-and-a-half months’ leave under the condition of joining meetings online. At the same time, the bank’s Managing Director, Omar Faruk Khan, was also sent on leave. Their leave was approved at a board meeting held on April 12.

Bank and central bank officials said a board meeting had been scheduled at Islami Bank’s headquarters on Sunday. However, customers and some bank officials reportedly gathered outside the head office, demanding that Managing Director Omar Faruk Khan remain in office while also calling for the chairman’s resignation.

Amid the growing tension, Jubayedur Rahman submitted his resignation to the Bangladesh Bank. A source at the bank also confirmed that Omar Faruk Khan had separately submitted his resignation letter to the board while on leave. However, no decision was taken as the board meeting was later cancelled.

Attempts to contact both Jubayedur Rahman and Omar Faruk Khan for comment were unsuccessful.

Islami Bank came under the control of the S Alam Group in 2017. Following the political transition after the fall of the previous Awami League government, Bangladesh Bank removed the group’s influence and appointed independent directors to oversee the bank.

According to the bank’s annual report, Islami Bank’s profit declined sharply from nearly Tk447 crore in 2016 to Tk137 crore in 2025. During the same period, the classified loan ratio surged from 4.25 per cent to 49 per cent, with defaulted loans now exceeding Tk92,000 crore.

Foreign investors’ ownership in the bank also dropped significantly, falling from 63 per cent to 17.91 per cent by March 2026. Meanwhile, Bangladesh Bank seized shares linked to S Alam after identifying its association with nearly 82 per cent of the bank’s holdings.