Continuous unrest at Islami Bank Bangladesh PLC has triggered fresh concern among depositors, leading to net withdrawals of about Tk 3,500 crore over the past five days amid fears about the bank’s stability.

Bank officials said that a section of depositors rushed to withdraw funds after protests over the appointment of the bank’s new chairman and demands for the reinstatement of the former managing director intensified.

After the withdrawal, deposit balance at Islami Bank stood at Tk 1,81,600 crore on Sunday, they said.

Islami Bank acting managing director Altaf Hossain acknowledged the withdrawal pressure and said that some depositors across the country had attempted to withdraw their savings out of panic.

He urged customers not to panic, saying that the bank remained financially sound and maintained strong liquidity.

‘Depositors’ money is completely safe. There is no reason for panic,’ he said, adding that the current situation would be resolved and deposit growth would resume.

A group of protesters under banner of the Islami Bank Conscious Customers’ Forum has been demonstrating since May 25, demanding the resignation of newly appointed chairman Md Khurshid Alam and reinstatement of former managing director Md Omar Faruk Khan.

The movement intensified on June 1 when police dispersed demonstrators in front of the bank’s headquarters using water cannons, tear gas, sound grenades and batons.

Bank officials said that the incident created further anxiety among depositors and contributed to increased cash withdrawals.

On Sunday, the forum issued a 24-hour ultimatum demanding Khurshid Alam’s resignation. It also called on all officials and employees of the bank to observe a two-hour pen-down strike on Monday in support of its demands.

The leadership change at the bank followed the resignation of chairman M Zubaidur Rahman and managing director Md Omar Faruk Khan on May 24, the last working day before Eid-ul-Azha.

Later the same day, the Bangladesh Bank appointed former deputy governor Md Khurshid Alam as chairman of the country’s largest Islamic bank.