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Dhaka: Islami Bank Bangladesh, the country’s largest private lender, has become the focus of a political confrontation between the Bangladesh National Party-led (BNP-led) government and opposition Jamaat-e-Islami over its future control, with protests erupting over a possible comeback by the controversial S Alam Group and the ruling party alleging that the agitation is being orchestrated by the Islamist party.

For more than a week, protesters associated with Jamaat-e-Islami have staged demonstrations demanding the removal of several board members, alleging that they are linked to the S. Alam Group, the conglomerate that acquired control of the bank in 2017 and has faced accusations of siphoning billions of taka from the lender.

The dispute spilled into parliament on June 9, where lawmakers from the ruling BNP and opposition Jamaat-e-Islami clashed over the bank’s ownership, management and political affiliations.

The debate was triggered by a notice submitted under Rule 68 of the Rules of Procedure by opposition leader and Jamaat chief Shafiqur Rahman, who called for Islami Bank’s shares to be returned to what he described as their rightful owners.

The bank experienced panic withdrawal after protests started due to the loss of  confidence of depositors.

According to a senior bank official, customers have withdrawn over Tk 40 billion in just a week making the bank unable to maintain mandatory cash reserve ratio (CRR) with the central bank exposing further risks for existing depositors.

Founded in 1983, Islami Bank had long been associated with individuals and institutions linked to Jamaat-e-Islami. That changed nine years ago when the Chittagong-based S. Alam Group, whose rise was widely linked to the government of former Prime Minister........

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