BASIC Bank MD removed for ‘irregularities’

 

The Bangladesh Bank (BB), the country’s central bank, officials said Faqurul has been barred from holding the post of the state-run BASIC Bank’s MD as well as taking employment, directly or indirectly, at any bank or financial institution for a period of two years.  

 

BB Governor Atiur Rahman issued the order on the day as per recommendations of the central bank standing committee. 

 

“We’ve already sent the order to the BASIC Bank Limited Sunday evening for taking necessary action,” a BB senior official told BBN in Dhaka.

 

He also said the concerned department of central bank has also sent the copy of order to the secretary of bank and Financial Institutions Division of the Finance Ministry and the chairman of BASIC Bank Limited for taking necessary action in this connection.

 

The central bank had brought serious charges against the removed MD of the state-run specialised bank concerning gross violation of banking rules in different areas including sanctioning a loan amounting to BDT 500 million at its Gulshan branch in the capital in 2012.

 

Earlier on April 6 last, the central bank standing committee was revived after more than two years under Section 48 (1) of the Banking Companies Act-1991.

 

The central bank earlier issued a show-cause notice to the BASIC Bank MD in line with its senior management team’s decision under Clause 46 of the Banking Companies Act, which gives the central bank the authority to remove an MD, if his/her activities prove harmful to the depositors.

 

The Act also says that in such a case BB must give the MD a reasonable time for self-defence.

 

On May 19 last, the four-member standing committee, headed by BB Deputy Governor Nazneen Sultana, heard the MD’s position regarding his alleged involvement in different irregularities along with failure to protect the depositors’ interests.

 

BBN/SSR/AD-25May14-10:50 pm (BST)