Sunday, October 21, 2018 | ePaper
NRBC Bank MD removed
Bangladesh Bank (BB) on Wednesday removed NRB Commercial Bank's Managing Director Dewan Mujibur Rahman for mismanagement and gross irregularities
BB spokesperson and executive director Subhankar Saha confirmed it to The New Nation in the afternoon.
"The central bank removed the Managing Director (MD) of NRB Commercial (NRBC) Bank as per the Section 46 of the Bank Company Act," said Subhankar Saha, adding, "He has been removed as allegations of irregularities and corruption against him have been proved".
BB also banned him from joining any bank or any other financial institution for two years.
The central bank earlier served show-cause notice against him on 10 counts of wrongdoings, including signature forgery, interference of outsiders in the board proceedings and corruption. All the irregularities were inter-linked and took place with the connivance of the board and the management. But the Managing Director never informed the BB about the irregularities, the show-cause notice said.
The replies from Mujibur Rahman contained a number of wrong information with the intent of misguiding the authorities. On July 17, the Banking Regulation and Policy Department of the central bank submitted a review report to a standing committee of the bank formed to look into the NRBC Bank matter.
The report suggested dissolution of the board and removal of the top executive as per the banking laws.
In an investigation done in 2016, BB found gross irregularities in loan disbursement of Tk 701 crore in the bank. The MD was allegedly involved in disbursing the loan violating the credit norms.
Later, BB appointed an observer in the bank. On March 20, in separate notices to the chairman and MD of the bank, BB said that the board of directors led by Farasath Ali failed to run the bank in protecting the interest of depositors and the public.
The BB notice asked to explain as to why the central bank would not remove him from the bank for 'failing to ensure the proper management and interest of the depositors'.