A recent recruitment scandal at Islami Bank Bangladesh PLC has exposed deep governance failures within the institution. Between 2017 and 2024, under the control of S. Alam Group, the bank hired over 10,800 employees, about 75 percent without public advertisement, with most appointments concentrated in one Chattogram subdistrict. Once a leading Islamic bank in South Asia, it now faces near insolvency due to irregular recruitment and financial mismanagement.

Audit and central bank inspections revealed manipulated hiring policies and massive irregular loans issued without collateral to newly formed companies. The government has already injected around Tk 35,000 crore to address the resulting capital shortfall. The article outlines five urgent steps: reducing excess staff, separating bad assets through an asset management company, restructuring capital, strengthening governance, and protecting depositor confidence. It also calls for a national Shariah supervisory board to ensure ethical compliance across Islamic banks.

The author warns that restoring control to those responsible for the crisis would destroy public trust and undermine any reform effort, urging immediate and accountable action to rebuild the bank’s credibility.