Islami Bank dismisses 200 employees, puts 4,771 on OSD

Staff Reporter :

Islami Bank Bangladesh has dismissed 200 employees and placed 4,771 others on “officer on special duty” (OSD) status after they refused to participate in a newly introduced “special competency assessment” exam.

Senior officials said the bank initially designated 4,971 employees as OSD for skipping the test. From this group, 200 were subsequently dismissed for allegedly violating service rules. Those placed on OSD will continue to receive their salaries and allowances but will have no active duties or responsibilities.

The special competency assessment was conducted on 27 September under the supervision of Dhaka University’s Institute of Business Administration (IBA). Of the 5,385 employees instructed to appear, only 414 attended, with the majority boycotting the exam despite management directives.

Sources within the bank noted that most affected employees were recruited between 2017 and August 2024, during the period when S Alam Group exercised control over Islami Bank. A significant portion of these employees are from Chattogram, especially Patiya upazila, which is considered a business stronghold of S Alam.

During that period, recruitment reportedly occurred without open circulars or competitive exams. Job applications were collected through drop boxes placed at S Alam’s residences and offices in Chattogram.

A written statement from the bank indicated that over 7,200 employees from Chattogram were recruited at that time, with more than 4,500 from Patiya alone.

It also noted that around 2,500 employees submitted certificates from BGC Trust University, Port City International University, and Southern University—institutions whose degrees the bank later found difficult to verify. Several fake certificates were detected, and disciplinary action has already been taken against those involved.

Earlier, on 29 August, the bank announced preparations for the competency test. This prompted a group of employees to file a writ petition on 27 August seeking to cancel it. The court subsequently tasked Bangladesh Bank with issuing directives.

In response, the central bank clarified that employee recruitment, retention, and assessment fall under Islami Bank’s jurisdiction. Following this, the exam was scheduled for 27 September. Bank officials stated that the assessment was necessary to ensure accountability amid widespread allegations of irregular recruitment during S Alam’s tenure.

Bangladesh Bank Executive Director and spokesperson Arief Hossain Khan told The Business Standard that while the regulator has no direct role, court scrutiny could arise over the past non-competitive recruitment and the current termination of staff via the assessment process.

On 5 August, following the fall of the Awami League government during the student-led uprising, Bangladesh Bank ended S Alam’s influence over Islami Bank and appointed a new board. The new management subsequently initiated a special competency test covering officers from senior levels down to assistant officers (cash).

Internal sources claim that S Alam Group siphoned nearly Tk1.31 lakh crore from Islami Bank through various schemes and proxies, leaving the bank in a severe financial crisis. The recent staffing overhaul is seen as part of broader efforts to restore credibility and stability to the country’s largest Shariah-based bank.