Dhaka, Bangladesh (BBN)- The central bank of Bangladesh removed Lutfar Rahman Badal from the board of directors of IFIC Bank Limited on Thursday, as he has been staying away from the bank’s activities for nearly one year.
Mr. Badal has also been barred from taking part in any activity of the private commercial bank or any other bank of the country for the next three years, a senior official of the Bangladesh Bank (BB) told BBN in Dhaka.
“We’ve taken the action against him for protecting public interest as well as that of depositors,” the central banker explained.
The BB official also said the central bank removed the director applying Section 46 of the Banking Companies Act 1991.
“We’ve already sent the order to IFIC Bank Limited for taking necessary actions in this connection,” the central banker noted.
Mr. Badal has failed to attend a single meeting out of the bank’s 18 board meetings, held between December 2014 and September 2015, according to the BB order.
Besides, the bank’s executive committee meeting has not been held from last November due to his absence.
BB has found that Mr. Badal’s long-term absence has been hampering normal functions of the bank, it noted.
Mr. Badal was also chairman of IFIC Bank’s Executive Committee and Risk Management Committee.
“The central bank has been informed that Mr. Badal was responsible for creating anarchy through disbursing money in and around Joydebpur area under Gazipur. A case is pending against him in Joydebpur Police Station in this connection,” another BB official said.
BB Governor Dr. Atiur Rahman issued the order on the day as per recommendations of the central bank standing committee.
If the removed director is aggrieved by the action of the central bank, issued under Section-46 the Banking Companies Act-1991, he may appeal to the Board of Directors of Bangladesh Bank against the order.
According to IFIC Bank website, Mr. Badal started business in the mid nineties establishing his own securities company. His industrial investments include a joint venture with China for manufacturing ceramics, health care consumer products manufacturing company and a television broadcasting company.
Other interests include major share holdings in a verity of financial institutions and licenses as well as franchises.