Special Correspondent :
Muhammad Awal Khan, Managing Director (MD) of BASIC Bank Limited, has resigned from his post pushing the state-owned bank into a fresh crisis.
He submitted the letter of resignation to the bank’s Chairman Alauddin A. Majid on August 14.
Khan joined BASIC Bank as MD on November 01, 2017 and was supposed to serve a three-year term.
Prior to the appointment, he was the MD of Bangladesh Krishi Bank (BKB).
When contacted BASIC Bank Chairman Alauddin A. Majid told The New Nation yesterday that he has already received Khan’s resignation letter, which will be submitted at the next meeting of the bank’s board for approval. If his resignation is approved, his successor will be appointed with the consent of the concerned ministry.”
He said, “As per rules, if one MD wishes to quit his position, he/she must inform the board before a period of three months. He follows the rules and submitted his resignation letter accordingly.”
Khan could not be reached for comments despite several attempts on his cell phone.
Bank insiders, however, said that Khan has decided to step down from his post following growing tussle with the bank’s board members over a number of issues related to the bank’s operation.
Once profitable BASIC Bank is now running with huge capital shortfall caused by shady loans of over Tk 4,500 crore during the tenure of its previous board led by its chairman Sheikh Abdul Hye.
The fund was siphoned out of the state-run bank between 2010 and 2013 when Bacchu chaired its board, according to a Bangladesh Bank investigation.
The bank plunged into a loss of Tk53 crore for the first time in the year 2013 since its inception followed by the huge loan scam. It incurred the highest amount of loss worth Tk2,700 crore in the year 2014.
The scam had severely eroded financial condition forcing it to seek recapitalization fund from the government. It has so far received Tk 3,390 crore bailout funds from the government in between 2012-2013 and 2016-17 fiscal years.
Muhammad Awal Khan, Managing Director (MD) of BASIC Bank Limited, has resigned from his post pushing the state-owned bank into a fresh crisis.
He submitted the letter of resignation to the bank’s Chairman Alauddin A. Majid on August 14.
Khan joined BASIC Bank as MD on November 01, 2017 and was supposed to serve a three-year term.
Prior to the appointment, he was the MD of Bangladesh Krishi Bank (BKB).
When contacted BASIC Bank Chairman Alauddin A. Majid told The New Nation yesterday that he has already received Khan’s resignation letter, which will be submitted at the next meeting of the bank’s board for approval. If his resignation is approved, his successor will be appointed with the consent of the concerned ministry.”
He said, “As per rules, if one MD wishes to quit his position, he/she must inform the board before a period of three months. He follows the rules and submitted his resignation letter accordingly.”
Khan could not be reached for comments despite several attempts on his cell phone.
Bank insiders, however, said that Khan has decided to step down from his post following growing tussle with the bank’s board members over a number of issues related to the bank’s operation.
Once profitable BASIC Bank is now running with huge capital shortfall caused by shady loans of over Tk 4,500 crore during the tenure of its previous board led by its chairman Sheikh Abdul Hye.
The fund was siphoned out of the state-run bank between 2010 and 2013 when Bacchu chaired its board, according to a Bangladesh Bank investigation.
The bank plunged into a loss of Tk53 crore for the first time in the year 2013 since its inception followed by the huge loan scam. It incurred the highest amount of loss worth Tk2,700 crore in the year 2014.
The scam had severely eroded financial condition forcing it to seek recapitalization fund from the government. It has so far received Tk 3,390 crore bailout funds from the government in between 2012-2013 and 2016-17 fiscal years.
