No witch-hunting: new Islami Bank chairman assures staff

The new management of Islami Bank will not indulge in any “witch hunting” of its employees, its Chairman Arastoo Khan said yesterday.

One can vote for any party, but it must not reflect on employees' professional activities, he said after a meeting with Finance Minister AMA Muhith at his secretariat.

“But if any political leaning is found in your work, we will not allow it at any cost.”

Khan cited diverting funds from the Islami Bank Foundation towards political movement in the guise of corporate social responsibility activity as a case of subversion.

Asked about the reason for the meeting, Khan said the finance minister wanted to know about the bank's financial condition and how it was running.

“The financial health of the bank is very good. Last year it made Tk 2,003 crore [in operating profit]. Its non-performing loan is 3.5 percent,” he said, adding that it was sitting on excess funds.

Discussions were held with the finance ministry about whether the banking system's excess funds can be used to finance the government's infrastructure projects.

Bangladesh usually takes funding from China and other countries to finance the projects.

Although the loans come with a 2 percent interest rate, the financing cost turns out to be not very low, he said.

Asked about the recent changes in Islami Bank, Khan said it is a normal practice in banks.

The bank's board went through wholesale changes on January 5.

Responding to another question as to whether there is any political motive behind the recent changes, Khan said: “It is a change of guards. It is nothing political.”

Meanwhile, the bank is also holding a two-day managers' conference, which started yesterday. The chairman and the directors spoke at the conference.

“The bank will not belong to any coterie -- it will be a bank for all. All will have to work in that way,” said one of the board members.

Islami Bank will deploy all of its strength and abilities in developing the country and building the nation, Khan was quoted as saying in a statement.

“As the largest commercial bank, the service door of the bank remains open for all people of the country. The preamble of the bank will remain unchanged.”

He asked all the managers to help in running the bank more professionally.

Islami Bank will run all of its activities in accordance with Shariah principles, but recruitment, promotion and transfer will be solely merit-based and irrespective of religion, caste and creed, he said.

More female employees will be recruited and the salary structure will be revised in line with other banks, Khan added.

As of 2016, Islami Bank's deposit stands Tk 68,000 crore, according to the statement.

Md Abdul Hamid Miah, managing director and CEO of Islami Bank, presided over the conference.