Bangladesh Bank dissolves Premier Bank board

Bangladesh Bank has dissolved the current board of Premier Bank and formed a new one – a move which, industry insiders claim, will end the dominance of the family members of HBM Iqbal, founder chairman of the bank and an Awami League lawmaker.

For the sake of the depositors, the central bank dissolved the seven-member board led by Mohammad Imran Iqbal, son of HBM Iqbal and chairman of the bank, Bangladesh Bank Director and Assistant Spokesperson Mohammad Shahriar Siddiqui told The Daily Star.

In its place, the banking watchdog formed a six-member board, including Arifur Rahman, a sponsor shareholder, as a director, and the remaining five as independent directors.

After leading Premier Bank as chairman for 26 years, HBM Iqbal stepped down in January this year from the private commercial bank he co-founded in 1999.

Imran Iqbal was made chairman of the bank after his father left the post.

The decision to restructure the board of Premier Bank has been taken due to shortcomings in corporate governance and effective policy implementation, failure to maintain credit discipline, and an overall lack of good governance, said Siddiqui. 

Bangladesh Bank made this decision under the provisions of Section 47 of the Bank Companies Act, 1991, he added. 

Under this law, Bangladesh Bank has the authority to dissolve or restructure any board if its activities are deemed contrary to or harmful to the interests of the bank company or its depositors, or against public interest.

Through this measure, transparency, accountability, and discipline in loan management will be re-established in the banking sector, he added.