Staff Reporter :
Bangladesh Bank (BB) has appointed an observer for National Bank Ltd (NBL) to monitor the activities and ensure oversight at the private bank following detection of irregularities in loan disbursement, officials said.
BB, the apex bank of the country, issued an order in this regard on Wednesday, posting its General Manager of the Department of Forex Reserve and Tresary Management Kazi Saidur Rahman as the observer with immediate effect and he has been posted in the bank for an indefinite period.
In the order, BB said, Kazi Saidur Rahman will now attend every meeting of the board of directors as well as meeting of the audit committee of the NBL and he would have to be informed of the agenda at least three days before the meeting of the board and audit committee.
A letter has also been sent to the Chairman of the National Bank informing him about the appointment of an observer under Section 49 of the
Banking Companies Act. The Chairman has been asked to extend full cooperation to Kazi Saidur Rahman.
Off-Site Supervision Department of BB issued the letter on behalf of the central bank.
Admitting the matter, BB spokesperson and executive director M Mahfuzur Rahman told The New Nation yesterday that the central bank has posted an observer for National Bank following detection of huge loan irregularities occurred at the bank’s two city branches.
He said, the observer would attend the bank’s audit, credit and board meetings so that the management and the board take decision in accordance with the BB rules and regulations.
Earlier, a special inspection of BB found loan irregularities of Tk 1,500 crore by the NBL’s Gulshan and Nimtoli branches. A team of BB’s Financial Integrity and Customer Service Department conducted the inspection recently.
At the moment, such observers have been appointed for overseeing three private banks — Islami Bank, ICB Islami Bank and Bangladesh Commerce Bank — and the state-owned BASIC Bank.
The National Bank started off in 1983 and now has 175 branches across Bangladesh.
Zainul Haque Sikder is its chairman and Shamsul Huda Khan is the managing director. Zainul Haque’s wife Monowara Sikder, daughter Parveen Haque Sikder and two sons Rick Haque Sikder and Ron Haque Sikder are also the board members of the bank.
The loans was allegedly provided to several companies owned by the Chairman of the bank and some big business houses of the country violating rules and regulations of the central bank.
Bangladesh Bank (BB) has appointed an observer for National Bank Ltd (NBL) to monitor the activities and ensure oversight at the private bank following detection of irregularities in loan disbursement, officials said.
BB, the apex bank of the country, issued an order in this regard on Wednesday, posting its General Manager of the Department of Forex Reserve and Tresary Management Kazi Saidur Rahman as the observer with immediate effect and he has been posted in the bank for an indefinite period.
In the order, BB said, Kazi Saidur Rahman will now attend every meeting of the board of directors as well as meeting of the audit committee of the NBL and he would have to be informed of the agenda at least three days before the meeting of the board and audit committee.
A letter has also been sent to the Chairman of the National Bank informing him about the appointment of an observer under Section 49 of the
Banking Companies Act. The Chairman has been asked to extend full cooperation to Kazi Saidur Rahman.
Off-Site Supervision Department of BB issued the letter on behalf of the central bank.
Admitting the matter, BB spokesperson and executive director M Mahfuzur Rahman told The New Nation yesterday that the central bank has posted an observer for National Bank following detection of huge loan irregularities occurred at the bank’s two city branches.
He said, the observer would attend the bank’s audit, credit and board meetings so that the management and the board take decision in accordance with the BB rules and regulations.
Earlier, a special inspection of BB found loan irregularities of Tk 1,500 crore by the NBL’s Gulshan and Nimtoli branches. A team of BB’s Financial Integrity and Customer Service Department conducted the inspection recently.
At the moment, such observers have been appointed for overseeing three private banks — Islami Bank, ICB Islami Bank and Bangladesh Commerce Bank — and the state-owned BASIC Bank.
The National Bank started off in 1983 and now has 175 branches across Bangladesh.
Zainul Haque Sikder is its chairman and Shamsul Huda Khan is the managing director. Zainul Haque’s wife Monowara Sikder, daughter Parveen Haque Sikder and two sons Rick Haque Sikder and Ron Haque Sikder are also the board members of the bank.
The loans was allegedly provided to several companies owned by the Chairman of the bank and some big business houses of the country violating rules and regulations of the central bank.
