The Board of Directors of Standard Bank threatened Bangladesh Bank by sending the Managing Director (MD) on compulsory leave. Not the chairman of the bank, rather this board is now running only under the thumb of the chairman's son Kazi Khurram Ahmed. He appoints and dismisses as he pleases. Few are paying attention to the bank's policies. Bangladesh Bank has summoned Standard Bank for violating the rules. The Central Bank ordered the reinstatement of MD Habibur Rahman after not getting any satisfactory reply. The bank has called a meeting of the board of directors on Sunday (March 31) regarding this.
However, it remains to be seen how much the words of the board will be accepted by the bank's founder chairman Kazi Akram Uddin Ahmed's son and the bank's youngest director Kazi Khurram Ahmed.
This Kazi Khurram Ahmed is running the bank at his own will, even though he has no official power. The latest example of which is the attempt to remove the managing director.
Several responsible sources of the bank said that Habibur Rahman was appointed as the managing director in this bank only one year ago. At that time, Kazi Khurram Ahmed was the only proposer of this appointment. Within a year and a month, that Kazi Khurram is trying to remove Habibur Rahman. Allegedly, Habibur is a member of Jamaat-e-Islami. And for that reason he cannot be kept in the bank.
The incident was on February 29. At the 388th board meeting of the bank on that day, after the regular meeting, Kazi Khurram raised the proposal to remove MD completely outside the agenda. The other directors of the bank were shocked by this.
Sources said Khurram Ahmed told the board at that time, "Keeping this MD will spoil the bank's image and the police can arrest us at any time."
Some directors present at the meeting did not accept the matter easily. They protested this proposal. But Khurram took a single decision to send Habibur Rahman on compulsory leave without taking anyone's objection into consideration. As the managing director and chief executive officer (CEO) of the bank Habibur Rahman joined on February 1, 2023. Earlier he served as Additional Managing Director (AMD) of Union Bank and Southeast Bank and before that as Deputy Managing Director (DMD) of NCC Bank and Jamuna Bank.
Standard Bank, known as the third generation bank of the private sector, has been operating in a conventional manner for a long time, but it started operations as a full-fledged Shariah-based bank from January 1, 2021. Related sources said that even though Kazi Akram Uddin Ahmed is the chairman, all activities of the bank are carried out under the direction of Kazi Khurram Ahmed. From disbursement of loans to recruitment, transfer, promotion, everything is under his control. He mainly played the role of MD. Due to these reasons, Habibur Rahman had a dispute with Khurram Ahmed. And Khurram got angry and took the initiative to dismiss MD.
Kazi Khurram said after the board meeting held on February 29 that lasted for about 2 hours, there were some urgent discussions. After saying this, MD was thrown out of the board meeting.
As soon as he left, Khurram said, "Our MD is a member of Jamaat-e-Islami. He is involved in money laundering. He has smuggled crores of money abroad. So he cannot be kept in the bank. I will send him (MD) on leave from this moment. Keeping this MD will spoil the image of the bank." Go and the police can arrest us at any time."
The directors were shocked by Khurram Ahmed's single decision. Two directors protested this decision. Two others were silent. Two independent directors commented that the work was not done right. The meeting was concluded without taking the opinion of the directors who participated online.
Bangladesh Bank summoned Standard Bank Chairman Kazi Akram Uddin Ahmed and his son Kazi Khurram Ahmed, director of the bank, after this news was published in the media. When asked the reason for sending MD on compulsory leave, they could not give any satisfactory answer. Later, the Central Bank ordered the reinstatement of the MD. At that time they were informed that Bangladesh Bank must be informed before taking such a decision. Central Bank policy should be followed for removal of MD appointment.
A source in the Central Bank confirmed that the matter of sending Habibur Rahman on forced leave will be discussed in the March 31 board meeting.
According to Bangladesh Bank sources, such a serious complaint against the MD cannot be decided in a miscellaneous discussion without putting it on the agenda in the board meeting. A director's forced decision has been imposed even though the decision was not unanimous. The president of the board did not decide on the compulsory leave of the MD. The Central Bank's circular for removal of MD was not properly followed.
Kazi Khurram Ahmed is the son of the founder chairman of the bank Kazi Akram Uddin Ahmed, so he has remained in place despite many irregularities, said some officials of the bank.
Although attempts were made to contact Standard Bank Director Kazi Khurram Ahmed on the overall issue, he did not pick up the mobile phone call. Later, when the chairman of the bank, Kazi Akram Uddin Ahmed, was called, he said 'I am sick, I cannot speak'.