Bangladesh, July 16 -- Al-Arafah Islami Bank effectively returns to its original owners as its board has been reconstituted reinstating the bank's founding sponsors, in a latest major development in banking-sector restructuring.

Sources said Bangladesh Bank Wednesday reconstituted the bank board by incorporating 14 new directors.

Reconstituting the board by inducting the bank's original sponsors' 14 representatives marks the return of its original sponsors.

The central bank issued Wednesday a letter to the bank's managing director informing him of the decision.

BB Executive Director and Spokesperson Arif Hossain Khan confirmed the shakeup in the Islamic bank's board of directors.

"The bank's financial condition has improved compare...