The Bangladesh Bank has bypassed its own rules by approving the appointment of Mohammad Shah Alam Sarwar as the strategic adviser of IFIC Bank PLC.

The central bank gave the special permission following an application from the board of the private commercial lender aimed at employing its former managing director as an adviser. This contradicts the central bank's rules.

As per rules, a bank's managing director or any official of up to two levels immediately below the managing director cannot be appointed as an adviser or consultant by the same lender until five years have passed after retirement, discharge or expiry of a contract.

Sarwar's tenure as managing director and CEO of the bank ended on May 13 this year.

After receiving the special approval, he began working as the strategic adviser last week, said officials of the bank.

Contacted, Bangladesh Bank Executive Director and Spokesperson Md Mezbaul Haque told The Daily Star that the BB had approved the appointment considering the application of IFIC.

Sarwar joined IFIC Bank as the managing director in December 2012.

"The bank's board informed us that the lender has initiated several reforms for which he (Sarwar) is needed," Haque said.

However, a senior official of the central bank, seeking anonymity, said the BB was forced to give the consent following pressure from government high-ups.

At least the chief executives of three private banks told The Daily Star that the banking regulator had set a bad example by approving the appointment.

"Now other banks will follow suit," said one of them.

The central bank, in January, rejected an application from National Bank to appoint the bank's former managing director Mehmood Husain as its adviser since it breached the rules.

Sarwar neither received phone calls nor replied to text messages.

This correspondent also sought comments from Salman F Rahman, chairman of the bank, through his public relations firm Impact PR. 

ImpactPR, a public relations firm on behalf of Salman Fazlur Rahman, the Chairman of IFIC Bank told The Daily Star that Sarwar has on the job experience to lead and manage mergers and acquisitions of three banks in the past.

It also said that IFIC Bank is exploring options to go through a merger or acquisition process with some other banks and this process is in its early stage and therefore it will not be prudent to disclose the identity of these banks.

"IFIC Bank Board appointed Sarwar as an adviser subject to approval from Bangladesh Bank."

Considering the above-mentioned reasons Bangladesh Bank accorded its approval as a special case, said ImpactPR.