Senior officials of the bank said that the pressure to withdraw money has increased after the appointment of former Deputy Governor of Bangladesh Bank Md. Khurshid Alam as the chairman.

Amidst the growing unrest among customers, more than Tk 3,500 crore has been withdrawn from Islami Bank in five working days. The pressure to withdraw has increased after the appointment of former Deputy Governor of Bangladesh Bank Md. Khurshid Alam as the chairman of the bank, the officials concerned said.

Senior officials of the bank said that the tendency to withdraw money among customers has increased rapidly since the appointment of Khurshid Alam.

An official said that in the first four working days (June 1-4) after his appointment, customers withdrew about Tk 2,570 crore. According to initial information received from various branches of the country, he also estimated that about Tk 1,000 crore could be withdrawn in one day yesterday alone.

Md. Khurshid Alam was appointed as the chairman of Islami Bank on May 24. He had earlier lost his post as deputy governor of Bangladesh Bank after the 2024 mass uprising. He was scheduled to take charge on the 1st of this month.

However, protests broke out in front of the bank's head office under the banner of the 'Islami Bank Conscious Customer Forum' over his appointment. This disrupted the scheduled board meeting for that day, as Khurshid Alam could not attend his first working day due to the protests. Later, the central bank ordered the meeting to be held online.

On the same day, the then chairman Zubaidur Rahman resigned amid protests by bank officials.

Islami Bank's additional managing director and acting managing director Altaf Hossain admitted that some customers were trying to withdraw their deposits. He said, "I urge customers not to panic. There is no reason to withdraw money in panic at this time."

He also said, "Currently, any loan approval is going through a strict vetting process. I hope Bangladesh Bank will come forward to address the concerns of customers and resolve the current situation.'

Bangladesh Bank Assistant Spokesperson Mohammad Shahriar Siddiqui said, 'We are keeping Islami Bank under observation. We are also monitoring whether customers are withdrawing cash or transferring it to other banks.'

He said the bank is not in a position where they will not be able to meet the withdrawal demand. He said, 'If Islami Bank faces a liquidity crisis, the central bank will provide assistance.'

He further mentioned, 'The bank was still in crisis after August 5, 2024 and Bangladesh Bank provided liquidity support at that time. Our concerned department is closely monitoring the matter.'

Bank officials said that after August 5, 2024, the board of Islami Bank was restructured and in 2025, the bank's total deposits increased to Tk 183,000 crore. Deposits increased by more than Tk 22,000 crore in a year. Since new deposits were more than withdrawals during that time, the bank's overall deposit base expanded.

However, the bank is reported to have lost around Tk 3,500 crore in deposits within just five days of the appointment of new chairman Khurshid Alam.

Meanwhile, a Bangladesh Bank official said that acting managing director Altaf Hossain has been summoned regarding the current situation of the bank. He reached Bangladesh Bank around 5 pm yesterday and was scheduled to meet with the governor.

Protests continue

The bank's officials and customers are continuing their protests over the appointment of Md. Khurshid Alam as chairman of the bank. A new program was also announced from a rally and protest march in front of the Islami Bank Tower in Motijheel yesterday (June 7).

Noor Nabi Manik, president of the protesters' platform, demanded that Khurshid Alam resign within 24 hours. He announced a two-hour 'pen break' and sit-in program across the country from 10 am to 12 noon today.

He also demanded that the 82 percent shares of Islami Bank, acquired by the S Alam Group through alleged irregularities, be sold to settle the outstanding loans.

Manik warned that Khurshid Alam will not be allowed to enter the bank and no defaulter or accused director can be placed on the bank's board.

Attempts to overcome the crisis

An additional managing director of the bank, on condition of anonymity, said that although managers of various branches of the country have informed Khurshid Alam about the long queues of customers and the pressure to withdraw deposits several times, no instructions have been received to deal with the situation.

Bangladesh Bank's Banking Regulation and Policy Department (BRPD) Director Md. Alauddin said, "The responsibility of our department is limited only to approving the appointment of directors and managing directors. Monitoring deposits and withdrawals is the job of another department."

However, he said that they have also received news of the withdrawal of money from Islamic banks through various means and the matter will be reported to higher authorities.

Despite repeated attempts to contact the spokesperson and assistant spokesperson of Bangladesh Bank, their comments on the matter were not available.

This recent situation is happening at a time when the trend of keeping cash outside the banking sector is gradually increasing and there is a lack of confidence in the banking sector as a whole.

According to Bangladesh Bank data, the amount of cash in circulation outside banks was Tk 2.75 trillion in December 2023. By the end of March this year, it had increased to about 2 lakh 8 thousand crore taka, that is, an increase of about 28 thousand crore taka in three months.