The banking community is abuzz with rumors of a change in the leadership of four state-owned banks. Although there has been no official decision or indication from the government in this regard, there has been strong discussion that the current managing directors (MDs) of Sonali, Janata, Agrani and Rupali Banks may be reshuffled. This has also had an impact within the banks; there has been unrest and uncertainty among the officials and employees.
According to industry insiders, whether there will be a change in leadership or not is a matter of government policy. However, if such speculation continues for a long time, the normal operations and decision-making process of the bank may also be affected.
Several bank officials said that amid huge capital shortages, pressure on non-performing loans and discussions on banking sector reforms, discussions are underway in various quarters about changing the current MDs of the four institutions. Although no official decision has been announced by the Finance Ministry or the government so far.
When asked about the truth of the matter, none of the top executives of the four banks agreed to speak publicly. However, several MDs, on condition of anonymity, told Daily Industry that they had also heard such discussions. The government can change the leadership at any time if it wants, that is the government's prerogative. But if such speculation continues for a long time without any decision, it creates discomfort among the officials, which also affects the work of the organization.
Bank officials claim that various indicators of the financial condition of the four banks are improving compared to the past. Still, they allege that a vested interest group is trying to mislead the government. They say that if an attempt is made to create instability in the banking sector by bringing out negative propaganda instead of the real picture, it will carry a negative message for the entire sector.
Sector stakeholders say that there is a common trend of leadership changes in various government institutions after a change of government in the country. But if uncertainty persists for a long time in a sensitive sector like the banking sector, it affects the confidence of all parties - officials, customers and the market. Therefore, if the government has decided to make a change, it should be clearly communicated. Again, even if it has decided to retain the current leadership, it also needs to be made clear. This will end unnecessary speculation and increase confidence in the banking sector.
In this regard, former Director General of Bangladesh Institute of Bank Management (BIBM) Dr. Toufiq Ahmed Chowdhury said, the ongoing uncertainty regarding the management of state-owned banks should be removed quickly. The government should give a clear position on this issue so that officials can perform their duties normally. At the same time, it is necessary to evaluate the leadership and efficiency of comparatively well-performing banks instead of judging all state-owned banks on the same criteria.
Although there has been no indication of any negative decision from the government regarding the change of MD so far. However, Finance Minister Amir Khosru Mahmud Chowdhury said in the National Parliament on Sunday that reducing high-rate default loans is now the biggest priority to restore discipline in the banking sector. The total default loans of 9 state-owned banks stand at Tk 1,88,701.75 crore. He also said that the government will continue to take a strict stance against those involved in looting public money and smuggling it abroad.
When asked about this, Nazma Mobarek, secretary of the banking and financial institutions department of the finance ministry, said she would speak later. Bangladesh Bank executive director and spokesperson Arif Hossain Khan said the role of the banking sector in the country's development is very important. Therefore, this sector should be run by qualified leadership. He said the finance ministry is responsible for appointing MDs of state-owned banks. The government can make changes if it deems necessary. However, Bangladesh Bank believes that leadership should be selected based on transparency and competence rather than political considerations.
Currently, Sonali Bank MD Md. Shawkat Ali, Janata Bank CEO Md. Mujibur Rahman, Agrani Bank MD Md. Anwarul Islam, and Rupali Bank MD Kazi Md. Wahidul Islam-all have been appointed for a three-year term in 2024. Their terms are scheduled to end in 2027. Earlier, they served as MDs or Deputy Managing Directors (DMDs) in various state-owned banks.
