The finance ministry on Tuesday issued a gazette appointing Dr SM Mahfuzur Rahman to replace Dr Jamal Uddin Ahmed as the chairman of state-owned Janata Bank.
A circular signed by finance ministry Deputy Secretary Jehad Uddin said Mahfuzur will perform his duties for three years from the date of joining.
Mahfuzur is the former chairman of the Department of Banking and Insurance at the University of Dhaka. He also served as the chairman of the Investment Corporation of Bangladesh.
Jamal was removed on Tuesday although he was recruited for a term of three years on August 20 last year.
There is a rumour inside the bank that Jamal denied sanctioning loan to a business group. There are also allegations that he took bribes from borrowers for approving loan.
However, none of these was confirmed by the bank.
When asked about the allegations through a text message, Jamal did not respond.
Jamal, general secretary of the Bangladesh Economic Association, joined Janata Bank as the chairman on August 26 last year.
Earlier, Luna Shamsuddoha was also removed from the post of the bank's chairman before completing her tenure.
Janata Bank has been widely discussed in the banking sector for the last two years after two big loan scams of AnnonTex and Crescent Group worth Tk8,300 crore came to light.
The Bangladesh Bank in its various investigation reports identified the involvement of the bank's top management in the corruption, but no visible action has been taken so far.
Rather, the government has been changing the chairman and board members of the bank repeatedly.
Janata Bank, which lost capital mostly in the last two years due to several scams, saw a significant improvement in its capital base in June last year, thanks to staggering provision and reduction in default loan.
The central bank's data show that the capital adequacy ratio of Janata Bank improved to 7.76 percent in June from 0.26 percent in March.