Dhaka, Bangladesh (BBN)-Bangladesh Bank on Thursday recommended the government for dissolving the board of directors of BASIC Bank.

The central bank has already sent a letter to the secretary Bank and Financial Institutions Division of the Ministry of Finance in this connection.

“We have recommended the government for taking necessary action against the board of director of BASIC Bank in line with the Bank Company Act, a senior official of Bangladesh Bank told the BBN.  

The BB’s latest stance came three days after imposition of restrictions on both sanction and disbursement of fresh loans from three branches – Dilkusha, Shantinagar and Gulshan – of the specialised bank.

The central bank earlier found irregularities in lending, recruitment and promotion in the bank, the central banker said without elaborating.

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/SSI/ANS-29May14-3:30pm (BST)