Social Islami Bank fires 579 probationary officers appointed by S Alam

Crisis-hit Social Islami Bank has terminated 579 probationary officers who were allegedly appointed illegally by Chattogram-based conglomerate S Alam group.

The human resource department of the Shariah-based lender sent letters to the 579 officers on Thursday, informing them that their services were being terminated with immediate effect.

The bank's board was previously dominated by the industrial conglomerate S Alam Group, which was close to the Awami League.

After the political changeover on August 5, the bank's board was reconstituted, ousting S Alam's men from the boardroom.

Bank officials said the terminated officers were appointed illegally from Patiya in Chattogram without any recruitment notification or examination.

Speaking on condition of anonymity, a senior bank official told The Daily Star that Social Islami Bank has 4,750 employees, of whom around 1,500 are from Chattogram.

Of the 579 terminated officers, 570 were appointed in 2024 and the remaining nine in 2023.

Mohammad Forkanullah, acting managing director of Social Islami Bank, told The Daily Star that the new board conducted an inspection of the human resources department. The inspection found that the terminated officers were appointed in violation of the bank's service rules, including the absence of recruitment notifications, interviews and examinations.

Forkanullah said the appointment letters included a clause allowing the bank to terminate probationary officers during their probationary period, as their positions were not yet permanent.

The top banker added that they resorted to the termination as the bank needed to reduce the operational cost.

He said more than 1,300 officials of the bank were appointed by S Alam group.

The Shariah-based bank is now struggling to repay their depositors due to the severe liquidity crisis.