Shares of Al-Arafah Islami Bank PLC surged 7.45% in Dhaka trading on Wednesday, responding to the Bangladesh Bank’s decision to reconstitute the lender’s board of directors with representatives from its founding sponsors.
The move effectively returns operational control of the bank to its original owners, ending a period of direct regulatory oversight that had left governance in limbo.
The sharp price appreciation reflects market relief that the prolonged uncertainty surrounding the bank’s leadership structure is resolving.
Investors had been cautious amid the regulatory intervention, which had dissolved the previous board and placed the institution under tighter state supervision.
The reinstatement of sponsor-led governance is viewed as a stabilizing factor for the bank’s strategic direction and operational autonomy.
This development follows the central bank’s earlier action to dissolve the existing board, a step taken to address governance concerns within the lender.