BB forms new boards for two more banks, one NBFI

Bangladesh Bank has formed new boards of directors for two more banks and a non-bank financial institution as a part of its ongoing reform initiatives for the banking sector.
The three are Bangladesh Commerce Bank, Al-Arafah Islami Bank and Aviva Finance. S Alam Group is one of the major shareholder in all three.
The central bank issued separate letters to this end yesterday.
In Bangladesh Commerce Bank, Md Ataur Rahman, former executive director of Bangladesh Bank, Md Mohsin Mia, former additional managing director of Meghna Bank, and Sheikh Ashrafuzzaman, a chartered accountant, have been appointed as independent directors.
Besides, Kamrul Hoque Maruf, joint secretary to Financial Institutions Division under the finance ministry, and Md Golam Mortuza, deputy managing director of Janata Bank, have been made directors.
Meanwhile, Khwaja Shahriar, managing director of LankaBangla Finance, has been appointed as the independent director and chairman of Al-Arafah Islami Bank.
Moreover, Md Shahin Ul Islam, former executive director of Bangladesh Bank, Md Abdul Wadud, former deputy managing director of NRB Bank, M Abu Eusuf, professor of development studies at the University of Dhaka, and Mohammad Ashraful Hasan, a chartered accountant, have been appointed independent directors at the Shariah-based bank.
In Aviva Finance, the central bank appointed Md Sadrul Huda, a chartered accountant, as independent director and chairman.
Besides, Md Golam Mustafa, former executive director of Bangladesh Bank, HM Mosarof Hossain, professor and chairman of finance department at the University of Dhaka, Md Rafiqul Islam, former deputy managing director of Agrani Bank, and Abu Taher Mohammad Ahmedur Rahman, former deputy managing director of the Investment Corporation of Bangladesh, were made independent directors of the financial institute.
Earlier, the central bank reconstituted the boards of some other Shariah-based banks, including Islami Bank, ending the control of Chattogram-based S Alam Group.
From 2017 to June of this year, the Chattogram-based conglomerate and its affiliated companies borrowed Tk 74,900 crore, which accounts for 47 percent of Islami Bank’s total outstanding loans as of March this year.
These loans were secured in the names of the group owner Mohammad Saiful Alam, his wife, daughter, relatives, and other officials, according to central bank sources.