Dhaka, Bangladesh (BBN) - The central bank of Bangladesh has asked the BASIC Bank Limited for implementation of its instructions relating to restriction on both sanction and disbursement of fresh loans from its three branches.
Bangladesh Bank (BB) Deputy Governor Abu Hena Mohammad Razee Hassan gave the instruction at a meeting held in the central bank headquarters in Dhaka on Tuesday with Fazlus Sobhan, the newly-appointed acting managing director (MD) of the state-owned bank.
On Monday, the central bank imposed restrictions on both sanction and disbursement of fresh loans from three branches - Dilkusha, Shantinagar and Gulshan - of the specialised bank to protect depositors’ interest.
However, loans, sanctioned earlier from this date, can be disbursed by the executive committee of the board with due diligence.
“We’ve asked the MD to submit written application, if face any problem in implementing the latest instructions,” the BB deputy governor told BBN in Dhaka after the meeting.
The deputy governor also said the BB may provide policy support to BASIC Bank for facilitating operations of the branches after examining their applications.
The central bank has warned the bank that the same restriction may be imposed on its other branches, if irregularities and corruption are found.
On Sunday, the BB ordered the removal of Kazi Faqurul Islam from the post of BASIC Bank MD on the charges of negligence in duty and irregularities.
BB also barred him from taking employment, directly or indirectly, at any bank or financial institution for a period of two years.
BBN/SSR/AD-27May14-11:50 pm (BST)