Md Obayed Ullah Al Masud, chairman and independent director of Islami Bank Bangladesh PLC, resigned from his post on Thursday.
He sent his resignation letter to the Bangladesh Bank governor Ahsan H Mansur, citing personal reasons.
His resignation comes days after Bangladesh Bank on July 3 instructed him to step down following multiple allegations.
Bangladesh Bank asked Masud to step down from the post as it received various allegations against Masud. He, however, began lobbying to remain in his position.
But pressure mounted after the Bangladesh Financial Intelligence Unit (BFIU) on July 14 sought detailed bank account information of Masud and his family members. A special operation was also conducted by a BFIU team on the same day.
Realising that holding on to his post was no longer tenable, Masud eventually chose to resign.
Bangladesh Bank officials said Masud recently travelled to the United States for a month without formally notifying either the bank鈥檚 board or the central bank.
No written memo was submitted, and he only gave verbal notice, stating he would attend a meeting with an international bank regarding a credit line.
They said that such meetings are typically the responsibility of bank management, not the chairman, unless there is a special invitation. The board鈥檚 role is limited to policy-making, they added.
Masud was appointed chairman by Bangladesh Bank in August 2024. He had previously served as managing director of state-owned Sonali and Rupali banks during the Awami League-led government.
Since August 2024, Bangladesh Bank has restructured the boards of 14 banks, including Islami Bank.