Bangladesh has recommended cancelling the remaining contractual terms of the managing directors of three state-owned banks, Sonali, Janata and Rupali, in a change of leadership at lenders that serve millions of depositors and public institutions.

Separate letters from the Financial Institutions Division of the Ministry of Finance were sent to the chairmen of the three banks on Monday. The division, in letters signed by deputy secretary Afroza Akter Riba, said the government had given its consent and recommendation to end the unexpired part of each contract. The boards will now take the final decision under the Bank Company Act and the terms of the appointments.

The three are Sonali Bank Managing Director Shawkat Ali Khan, Janata Bank Managing Director and Chief Executive Officer Md Mazibur Rahman, and Rupali Bank Managing Director Kazi Md Wahidul Islam. All were appointed during the interim government after the Awami League government fell in August 2024.

Sonali Bank Chairman Muhammed Mahbubur Rahman told Prothom Alo that the bank received the letter on Monday evening and had started the necessary process. He said the managing director would not remain in the post from the next working day, and that a senior deputy managing director would hold charge until a new managing director is appointed.

The decision follows the earlier removal of the Agrani Bank managing director. The Business Standard reported, citing sources, that the prime minister had directed changes to the top executive posts at all state-owned banks as part of banking-sector reforms. A committee led by the finance minister is expected to name replacements soon and is considering deputy managing directors as well as retired officials and managing directors from private banks.

Janata and Rupali have higher rates of defaulted loans than Sonali, Prothom Alo reported. The government has not announced the names of the incoming managing directors or a date for the appointments.