Special Correspondent :
A dispute has emerged between the directors of NRB Bank over control and management of the bank. Even the heat of the conflict is often transmitting at the bank’s board meeting inviting some unpleasant situation, bank insiders said.
“Board meeting devolved into a shouting match, marked by directors’ disagreement over the controlling of the affairs of the banking company,” a Director of NBR Bank told The New Nation on Thursday on condition of anonymity.
Bank insiders said directors found themselves with a conflict of interest and involved in grouping, one group is loyal to the incumbent chairman Mohammed Mahtabur Rahman and another is demonstrating loyalty to former chairman and director of the bank Iqbal Ahmed OBE.
“Such a situation is hampering the core activities of the bank and business growth as well. “It is also undermining credibility of the board,” they added.
NRB Bank is a fourth generation bank in Bangladesh, which commenced banking operations on 04 August 2013.
While talking to The New Nation a number of bank director raised a long-list of allegation relating to irregularities and breach of trust against the current chairman.
“The bank is poorly run under the leadership of incumbent chairman who took the charge in 2016,” said a director, adding, “Business growth and profit of the bank took a big hit during his tenure. Even the bank reported Tk 40 crore losses this year.”
Another director said Mahtabur Rahman is trying to convert NRB Bank into a family venture by buying shares in the name of his family members and anonymously. Even he is buying shares of minor sponsors to get a major stake
of the bank. He thus violated the bank’s Memorandum of Articles and Articles of Association.
He promised to announce 12 per cent dividend during his tenure when he took the charge of chairman. But last year, the NBR Bank could announce only 8 per cent stock dividend. Allegation has been raised that he is holding the post of bank chairman even if he is a loan defaulter. On August 30, 2016, Bangladesh Bank announced his bank directorship vacant for defaulting loan repayment of United Airways, a private airliner owned by him. Suppressing the truth he continues to hold his chairmanship riding on a court order, it was alleged.
Terming these allegations as ‘propaganda,’ Mohammed Mahtabur Rahman said, “A vested quarter spread the propaganda with an ulterior motive to undermine the credibility of the incumbent board. Allegations that brought against me are false. If anyone can proof the allegations, I will quit the bank.”
Bank insiders also said that Mahtabur seeks to take control of the bank through forming an alliance of some directors. But majority of the directors is supporting Iqbal Ahmed for his contribution in founding the bank and its advancement.
“The current situation of the bank is not pleasant at all,” Iqbal Ahmed OBE, the founding chairman and director of the bank, told The New Nation.
He said he had funded the bank with some perfect gentlemen. But, a dictatorship has now been established in the bank. Directors are being harassed when they speak at the board meeting. Even they have given threat to expel from the board.
He said over the past three years, NRB Bank has been weakening in all indicators. Heated debate and shouting took place when the issue was raised in the last board meeting.
“I have no way but to quit from the bank as I can not quarrel anymore,” he said this with a note of frustration while citing the rapid deterioration of the bank’s governance.
NBB Bank was established by the initiative of Iqbal Ahmed (OBE), a British expatriate and businessman.
Bangladesh Bank had given a letter of intent (LoI) in the name of Iqbal Ahmed on April 17, 2012 to set up a bank.
