The government has appointed private-sector executives to lead two state-owned banks for the first time in two decades, following a recent revision of eligibility criteria for chief executives at public financial institutions. The Financial Institutions Division (FID) of the Ministry of Finance announced four managing director (MD) appointments on October 26, involving Agrani, Janata, BASIC, and Sonali banks.

Md Mahbub Alam, formerly additional managing director of Southeast Bank, was named MD of Janata Bank, while Noor Mohammed, ex-deputy managing director of Jamuna Bank, will head Agrani Bank. Md Nurul Huda, previously deputy managing director of Janata Bank, was appointed MD of BASIC Bank. Additionally, Shawkat Ali Khan, who had been serving as MD of Sonali Bank, was reinstated to complete his ongoing three-year term, set to expire in October 2027, after the government reversed an earlier decision to cancel his appointment.

These appointments mark a departure from a two-decade practice of appointing only career bureaucrats or internal candidates to lead state-owned lenders. The last time a private-sector executive was appointed to lead a state bank was in 2004, when Syed Abu Naser Bukhtear Ahmed served as MD of Janata Bank during the prior BNP-led government.

The moves follow a broader reshuffle of top management at state-owned banks. Last week, the government terminated the remaining contractual tenures of MDs and CEOs at Sonali, Janata, and Rupali banks. Earlier, appointments of heads at Agrani Bank, Bangladesh Development Bank Limited (BDBL), and BASIC Bank were canceled. These decisions were closely tied to a revised eligibility policy announced on October 19 that governs appointments of managing directors and chief executive officers at six state-owned commercial banks: Sonali, Janata, Agrani, Rupali, BDBL, and BASIC.

Under the updated criteria, candidates must possess at least 20 years of experience in banking or financial institutions. However, the mandatory two years of experience in the position immediately subordinate to MD or CEO can be waived for candidates demonstrating special skills, professional qualifications, leadership capability, and a strong reputation.

The three newly appointed MDs have been given three-year contractual terms, reaffirming the government’s intent to bring new management talent from the private sector into public banks. Observers see this move as an effort to enhance the efficiency and performance of state-owned banks amid ongoing challenges in the sector.