Central bank sacks NRB Commercial Bank MD

Bangladesh Bank (BB) has removed Dewan Mujibur Rahman, managing director of the NRB Commercial Bank, as allegations of irregularities and corruption have been proved against him.

Moreover, the central bank has also banned him from joining any bank or financial institution for the next two years.

Subhankar Saha, executive director of BB, said the directive of Governor Fazle Kabir in this regard had been sent to NRB Commercial Bank yesterday morning.

After receiving allegations of corruption against Dewan Mujibur Rahman, the central bank conducted an investigation and took the decision on the basis of the findings.

Besides, it has been found that loans were sanctioned in the absence of directors at several board meetings of the bank. These were in violation of the rules.

In total, 10 allegations of corruption were investigated against Dewan Mujibur Rahman.

Last year, a BB probe revealed serious irregularities in the approval of loans amounting to Tk 701 crore by NRB Commercial Bank.

On March 20, the central bank had sent a notice to the chairman and the MD of NRB Commercial Bank, saying the board of directors, led by Farasat Ali, chairman of NRB, had failed to protect the interests of depositors and the public.

The notice was sent under Section 46 of the Bank Company Act, asking NRB Commercial Bank why legal action would not be taken against the chairman and the removal of MD, as they had failed to ensure proper management of the bank.

Farasat Ali, the NRB chairman, was once president of the United States Awami League.

NRB Commercial Bank got its license in 2013. The government approved the bank with the aim of attracting investment from NRBs to the bank.

But the bank’s nonperforming loans stood Tk 194 crore at the end of third quarter of this year, up from Tk 128 crore a year earlier as the bank is struggling to recover the shady loans it gave earlier.

Earlier this month, central bank asked Farmers Bank to remove its managing director AKM Shamim for the bank’s failure to manage liquidity.

But, the Farmers Bank chairman Mohiuddin Khan Alamgir and executive committee chairman Md Mahbubul Haque Chisty resigned from their posts while Shamim remained in his office following an appeal to the central bank.

 

Central bank sacks NRB Commercial Bank MD

Bangladesh Bank (BB) has removed Dewan Mujibur Rahman, managing director of the NRB Commercial Bank, as allegations of irregularities and corruption have been proved against him. Moreover, the central bank has also banned him from joining any bank or financial institution for the next two years. Subhankar Saha, executive director of BB, said the directive of Governor Fazle Kabir in this regard had been sent to NRB Commercial Bank yesterday morning. After receiving allegations of corruption against Dewan Mujibur Rahman, the central bank conducted an investigation and took the decision on the basis of the findings. Besides, it has been found that loans were sanctioned in the absence of directors at several board meetings of the bank. These were in violation of the rules. In total, 10 allegations of corruption were investigated against Dewan Mujibur Rahman. Last year, a BB probe revealed serious irregularities in the approval of loans amounting to Tk 701 crore by NRB Commercial Bank. On March 20, the central bank had sent a notice to the chairman and the MD of NRB Commercial Bank, saying the board of directors, led by Farasat Ali, chairman of NRB, had failed to protect the interests of depositors and the public. The notice was sent under Section 46 of the Bank Company Act, asking NRB Commercial Bank why legal action would not be taken against the chairman and the removal of MD, as they had failed to ensure proper management of the bank. Farasat Ali, the NRB chairman, was once president of the United States Awami League. NRB Commercial Bank got its license in 2013. The government approved the bank with the aim of attracting investment from NRBs to the bank. But the banks nonperforming loans stood Tk 194 crore at the end of third quarter of this year, up from Tk 128 crore a year earlier as the bank is struggling to recover the shady loans it gave earlier. Earlier this month, central bank asked Farmers Bank to remove its managing director AKM Shamim for the banks failure to manage liquidity. But, the Farmers Bank chairman Mohiuddin Khan Alamgir and executive committee chairman Md Mahbubul Haque Chisty resigned from their posts while Shamim remained in his office following an appeal to the central bank.