Allegations of massive financial irregularities and corruption have surfaced at Sonali Bank PLC, the country's largest state-owned commercial and treasury bank, raising serious concerns over governance, transparency, and political interference. According to industry insiders and sources quoted by The Daily Industry, Managing Director Md. Shawkat Ali Khan and Deputy Managing Director (Admin) Md. Rezaul Karim are at the center of these allegations, accused of orchestrating questionable promotions and accepting large sums of money in exchange for favors.
The controversy reportedly stems from the promotion of 52 bank officials from Assistant General Manager (AGM) to Deputy General Manager (DGM) levels during the midnight of February 10, 2026 - just 2-day before the 13th parliamentary election. Sources allege that the timing was deliberate, designed to bypass scrutiny and facilitate bribery.
Industry insiders told Daily Industry, "The promotions conducted at midnight, just before a national election, raise serious questions about intent. It appears to be a calculated move to benefit officers with political backing and to extract significant financial gains."
Allegations of Bribery and Patronage: Md. Rezaul Karim, who serves as DMD (Admin) and member secretary of the promotion committee from AGM to DGM, is accused of taking bribes amounting to crores of taka in coordination with Managing DirectorMd. Shawkat Ali Khan, the chairman of the promotion committee. Sources claim that these promotions disproportionately favored officers with ties to the ruling Awami League.
"The scale of irregularities is unprecedented," a senior banker told Daily Industry on condition of anonymity. "The MD and DMD appear to have manipulated the promotion process for personal gain, rewarding officers aligned with the current political establishment while sidelining others."
It has also been noted that both Rezaul Karim and Shawkat Ali Khan are Presidium Members of the Bangabandhu Parishad, a political organization linked with the Awami League. Insiders argue that this affiliation has allowed them to enjoy privileges and protection from the government, giving rise to questions about political interference in the operations of Sonali Bank.
Leadership Controversy and Chairman Resignation: The scandal gained further attention after Sonali Bank Chairman Muslim Chowdhury tendered his resignation recently, sparking speculation among industry observers. The Daily Industry sources suggest that internal pressure from MD Shawkat Ali Khan and DMD Rezaul Karim may have contributed to his departure.
"Officials inside the bank are questioning why the chairman resigned at this critical juncture," said a banking analyst. "There are credible claims that the MD and DMD bear responsibility for the circumstances leading to his resignation, which could indicate an effort to consolidate power and control over the bank's administrative machinery."
The timing of the promotions, combined with the chairman's resignation, has led to heightened scrutiny of Sonali Bank's governance structure. Critics argue that the bank's top management appears to operate with little accountability, raising alarms about the integrity of decision-making in the country's largest financial institution.
Impact on Bank Governance and Public Trust: Experts warn that these alleged irregularities could have far-reaching implications for Sonali Bank's reputation and operational stability. "When senior management engages in politically motivated promotions and potential bribery, it undermines the confidence of depositors, investors, and stakeholders," said a financial expert. "Sonali Bank is a public institution; any perception of corruption at the top can erode public trust and affect the broader banking sector." The Daily Industry further reports that internal stakeholders are demanding a transparent investigation into the promotions and the role of the MD and DMD in alleged financial misconduct. Questions have also been raised about whether the Ministry of Finance or Bangladesh Bank will intervene to ensure that such practices do not continue unchecked.
Political Connections and Alleged Privileges: Industry sources emphasized the political backdrop to the controversy. Both MD Shawkat Ali Khan and DMD Rezaul Karim are linked with the Awami League through the Bangabandhu Parishad and have allegedly benefited from patronage over the years. According to insiders, their political affiliations may have enabled them to influence internal administrative decisions, including promotions and transfers, in ways that serve political and personal interests rather than merit or institutional needs.
"Political connections should never dictate human resource decisions in a bank, especially in a state-owned institution," a senior economist told The Daily Industry. "The allegations suggest that officers without political backing may have been overlooked, while those with ties to the ruling party were rewarded, creating systemic inequities and potentially compromising the bank's performance."
Calls for Urgent Oversight and Accountability: With allegations mounting, industry observers and banking experts are urging the government and regulatory authorities to take immediate action. Recommendations include launching an independent audit of the promotions, investigating potential financial irregularities, and ensuring that future administrative decisions are transparent and merit-based.
"The situation at Sonali Bank is not just a matter of internal management; it is a national concern," The Daily Industry quoted sources as saying. "If left unaddressed, these issues could have long-term repercussions for Bangladesh's banking system, investor confidence, and public trust in state institutions."
While MD Shawkat Ali Khan joined Sonali Bank on October 30, 2024, for a three-year term, and DMD Rezaul Karim continues to hold a senior administrative role, the coming weeks may be decisive for their tenure and the bank's credibility. Calls for accountability and oversight are expected to intensify, especially as stakeholders and industry insiders demand explanations for the allegedly politically motivated and financially dubious promotions.
The unfolding controversy at Sonali Bank illustrates the complex intersection of politics, finance, and governance in Bangladesh's public sector institutions. As allegations of bribery, irregular promotions, and political patronage continue to circulate, the onus is on regulators, the government, and bank stakeholders to restore credibility, enforce transparency, and ensure that state-owned financial institutions operate in the public interest rather than for personal or political gain.
The Daily Industry will continue monitoring developments and provide updates on regulatory responses, administrative decisions, and the ongoing investigation into alleged corruption at Sonali Bank.
