Salma Banu joined Palli Sanchay Bank as Managing Director on October 21, 2024 without the prior approval of Bangladesh Bank. Her appointment violated Section 13(2) of the Palli Sanchay Bank Act, 2014.

After a long 6 (months), on April 23, 2025, she submitted a letter to Bangladesh Bank seeking permission to act. On May 5, 2025, Bangladesh Bank directed the Chairman of Palli Sanchay Bank to provide an explanation within 5 (five) working days along with all the authentic documents of his appointment and copies of his national identity card. Dr. Mohammad Mohiuddin, Additional Secretary of the Legislative and Parliamentary Affairs Department, is also serving as the Chairman of the bank. He submitted an explanation to Bangladesh Bank on May 14, 2025. In his explanation, he mentioned that since the rules for the appointment of the managing director of Palli Sanchay Bank were not formulated by the government, the government has the power to appoint the managing director as per Section 13(2) of the Palli Sanchay Bank Act 2014.

However, the gazette of the Palli Sanchay Bank (Management) Rules-2015 was issued on November 24, 2015. The rules and provisions for the appointment of the managing director are mentioned in Rule No. 4 of the said rules. Wrong information has been provided to Bangladesh Bank with malicious intent.

Investigation revealed that Salma Banu was an active worker of the Dhaka University Students League. She joined Rupali Bank as a senior officer in 1998. During the fascist government, she was actively involved with the Awami League, so she received 4 promotions from DGM to Deputy Managing Director in 3 years. Due to the failure of the current management authority of the bank to fulfill its responsibilities, the activities of the bank have reached the bottom. There is extreme dissatisfaction among the employees of the bank with the management authority. The bank's current total loan is 9202.08 crore taka, of which 51% is overdue and 23.78% is classified. After the dissolution of One House One Farm, 27% of the loan was transferred to the bank as overdue on June 30, 2021. The rate of overdue and classified loans is increasing day by day, as a result of which the bank's activities are limited and the bank is becoming sick. Despite the huge demand for loans from the borrowers, the managing director has made FDRs of about 2500 crore taka in various private and bad banks for malicious purposes, out of which a large number of FDRs cannot be broken due to the liquidity crisis of the said banks, which is also uncertain in the future. Investigations have revealed that corruption is involved in all the activities of the bank, as a result, customers are withdrawing their membership of the association from the bank. One House One Farm Project has transferred 57 lakh customers to the bank, currently there are 48.26 lakh. Significant customers are decreasing day by day. The bank is going to collapse due to the incompetence of the current Managing Director, Deputy Managing Director and General Manager. In order to alleviate the poverty of the 5.7 million poor and marginalized people of the bank and to save the bank, the officers/employees have informed on the condition of anonymity that a qualified Managing Director, Deputy Managing Director and General Manager are urgently needed in the bank and have sought the intervention of the Financial Institutions Department and Bangladesh Bank in this regard.