Bangladesh’s central bank yesterday fired Muhammad Yunus from the celebrated microfinance lender he founded, capping months of political pressure for the Nobel prize winner to quit.

Bangladesh Bank said Yunus had failed to seek its prior approval when he was reappointed managing director in 2000, violating one of the statutes of the partly state-owned Grameen Bank, which was set up in 1983.

But his removal was disputed by Grameen, which said he was still there.

“Prof. Muhammad Yunus has been removed from his position as managing director of Grameen Bank,” said the order, which was sent to the bank’s government-appointed chairman Muzammel Huq.

The edict, seen by AFP, added that “his position and tenure as the managing director of the Grameen Bank is illegal”.

Grameen, whose board is mostly loyal to Yunus, immediately disputed the attempt to force out their talismanic leader. Earlier, chairman Huq had said that Yunus had been relieved of his duties “with immediate effect”.

The bank, which is 25 per cent state-owned, said in a statement it had “complied with the law in respect of appointment of the managing director”.

“According to the bank’s legal advisers, the founder of Grameen Bank, Nobel Laureate Professor Muhammad Yunus, is accordingly continuing in his office,” it added.