Bangladesh Bank-appointed administrators yesterday took charge of five shariah-based banks slated for merger as part of a resolution process aimed at restoring governance and strengthening accountability in the troubled lenders.

The five banks are First Security Islami Bank PLC (FSIBL), Social Islami Bank PLC (SIBL), EXIM Bank of Bangladesh PLC, Global Islami Bank PLC, and Union Bank PLC. Except for EXIM Bank, all the other four were under the control of Mohammed Saiful Islam, owner of conglomerate S Alam Group, who reportedly borrowed large amounts from these banks using companies that exist only on paper.

As part of the central bank's move, the managing directors (MDs) and CEOs of SIBL and Union Bank were forced to resign yesterday. With this, the MDs and CEOs of all five banks have lost their jobs since last year.

Contacted, SIBL MD Shafiuzzaman told The Daily Star yesterday that the central bank asked them to resign as the banking regulator took over the bank under the Bank Resolution Ordinance 2025.

"I submitted my resignation letter to the administrator, and today is my last working day," he said.

Shafiuzzaman had replaced Zafar Alam as the bank's MD in March this year after the reconstitution of the bank's board.

Meanwhile, Mohd Humayun Kabir, MD and CEO of Union Bank, also confirmed that he had submitted his resignation letter to the administrator yesterday.

He was appointed to the post in March this year after the bank's previous MD, ABM Mokammel Hoque Chowdhury, resigned and fled the country following the political changeover on August 5 last year.

FSIBL removed its MD, Syed Waseque Md Ali, over loan irregularities in July this year. Global Islami's MD, Syed Habib Hasnat, and EXIM Bank's MD, Mohammad Feroz Hossain, were forced to resign after the reconstitution of their respective boards last year.

The latest development follows a BB circular on Wednesday, which stated that the five banks have been brought under the resolution process to restore good governance, ensure accountability, bring overall discipline to the banking sector, protect the interests of depositors, and regain public confidence in the overall banking system.

In the biggest banking shake-up, the central bank also sent letters to the chairmen of the five banks stating that the lenders have been brought under the resolution process in accordance with Section 15 of the Bank Resolution Ordinance 2025.

In a separate development yesterday, the trading of the shares of the five shariah-based banks was suspended as well.

WHO ARE THE ADMINISTRATORS?

Each of the five banks has one administrator along with an assisting team to carry out responsibilities.

BB Executive Director Md Salah Uddin has been appointed as the head of the administrator's team for Social Islami Bank; BB Director Mohammad Abul Hashem for Union Bank; BB Executive Director Muhammad Badiuzzaman for First Security Islami Bank; BB Director Md Muksuduzzaman for Global Islami Bank; and BB Executive Director Md Sawkatul Alam for EXIM Bank, central bank documents showed.

The temporary administrations have been assigned four key responsibilities: to ensure that the banks remain operational and that large payments, remittances, and LC settlements continue smoothly; to integrate and centrally manage the IT infrastructure; to assess staffing levels and the overall human resource situation and make necessary reorganisations; and to rationally merge multiple branches of the banks located in the same area.

Officials of the central bank said that all the administrators' teams joined the five banks yesterday.