Dhaka, Bangladesh (BBN) – The NRB Commercial Bank Limited (NBRCBL) on Sunday saw a major management reshuffle with the election of its new chairman and vice-chairman aiming to ensure corporate governance in the fourth generation bank.

Tamal SM Parvez and Mohammad Shahid Islam were elected chairman and vice-chairman of the private commercial bank (PCB) at an emergency board meeting held at its Gulshan office in the capital Dhaka.

At the same meeting of the board of directors, Engr. Farasath Ali and Dr. Toufique Rahman Chowdhury resigned from the post of chairman and vice-chairman of the private bank.

Besides, Abu Bakr Chowdhury, Rafiqul Islam Mia Arzoo, and Adnan Imam, a British citizen, were elected chairmen of executive, audit and risk-management committees respectively.

Talking to BBN, a director of the bank said some major changes have taken place in the board meeting.

The board wants to build image of the bank through ensuring corporate governance, the director explained.

The restructured board appointed Deputy Managing Director (DMD) of the NRBCBL Kazi Md. Talha acting MD and chief executive officer (CEO) while the incumbent MD and CEO, Dewan Mujibur Rahman, was sent on leave with full financial benefits to avoid legal complications.

The board has granted Mr. Rahman’s temporary leave for avoiding legal complexity, another director of the bank said.

This happens to be a latest event of top-level changes in a number of banks, and close on the heels of shakeup in the top management of Farmers Bank Limited, another fourth generation bank.

Earlier on December 06 last, the central bank of Bangladesh ordered the removal of the NRBCBL MD and CEO on charges that include wrongful lending.

A day after the removal order, the High Court (HC) stayed the Bangladesh Bank decision having removed the NRBCBL MD and CEO.

The HC also issued a rule asking the BB and the government to explain why the central bank’s decision to remove Rahman should not be declared illegal.

The central bank of Bangladesh had served show-cause notices on the chairman and the MD of the NRBCBL over 10 counts of grave irregularities at the bank of non-resident Bangladeshis.

In the show-cause notice sent to NRBC Bank Chairman, Mr Farasath Ali, on March 20 last, the BB had asked him why appropriate action in line with the Banking Companies Act should not be taken against the bank for the irregularities.

The central bank in the notice said it seems the board of directors failed to uphold the Banking Companies Act to protect interests of the depositors and the public.

Earlier on December 29 last year, the central bank had appointed an observer to the NRBCBL for improving its financial health through ensuing good governance in the bank.