Monday, May 25, 2020 | ePaper

Trouble awaits the depositors

  • Print
IT changed its name to hide its filthy scams, but failed to get a place in the good book of the banking sector. It's Padma Bank, which is now largely in the dismaying situation for not leaving same old path. The old Farmers Bank, had secured a license for banking on political consideration, was allowed to embezzle public money deposits of different public limited companies and government agencies. The dying condition was not unknown to the Bangladesh Bank but political blindness had overcast the notion of governance.
Since established in 2013, the bank became a hotbed for financial irregularities in less than three years of operation. Allegations of corruption against them became deafening and depositors, including different government agencies, started pulling out their money. This prompted the central bank and the government to step in and rescue the bank headed by a ruling party man. Four State-owned commercial banks -- Sonali, Janata, Agrani and Rupali -- and the Investment Corporation of Bangladesh bailed out the bank by buying equity shares worth Tk 715 crore in March last year.
A total of 18 government organisations parked Tk 1,323 crore in deposits with the Padma Bank, according to the central bank. Of the sum, it has managed to return only Tk 87.47 crore. Padma Bank owes Tk 28.1 crore to Petrobangla, Tk 41.84 crore to Mongla Port Authority, Tk 109.08 crore to Jiban Bima Corporation, Tk 38.60 crore to the Bangladesh Telecommunication Regulatory Commission, Tk 170.29 crore to Chattogram Port Authority, Tk 541.31 crore to the Climate Trust Fund, Tk 140 crore to Sonali Bank, and Tk 54 crore to Sonali Bank (in-call money), and Tk 47.05 crore to the Bangladesh Power Development Board. But the bank has been unable to honour their request to cash withdraw. Amidst the situation, the central bank also instructed Padma Bank to sit with the government and non-government organisations in order to settle the fixed deposit, special notice deposit and call money.
What's most unfortunate is that, the central bank didn't take any initiative to rescue the banking sector amid widespread irregularities. We fear, most of the commercial banks will face the same situation of Padma Bank if they are asked by the depositors to return back their money.

More News For this Category

Amphan hit areas need immediate reclamation

THE first 'super cyclone' Amphan has caused massive damage to life and agriculture in 26 districts, while coastal dykes damage sharply. Preliminary estimation by the Ministry of Disaster Management

Eid-ul-Fitr is not celebration in the midst of killer corona, observe safety guidelines

EID Mubarak! The nation will celebrate the Eid-ul-Fitr either on Sunday or Monday (subject to sighting of the moon) after the   month-long fasting but there is hardly any mood

Albeiro Vargas

Albeiro Vargas

Sir Frank Peters :And now here's something that offer respite from the depressing Coronavirus Covid-19 pandemic reports and hope for humanity. How is it possible not to have heard

During Covid-19

During Covid-19

Rayhan Ahmed Topader  :Muslims around the world will observe the holy month of Ramadan under lockdown and tight restrictions due to the coronavirus outbreak that has paralysed entire countries.The

Take measures to help migrant returnees cope with pandemic loss

INTERNATIONAL Organisation for Migration (IOM) said that the most vulnerable returning Bangladeshi migrants will require immediate support to meet their needs for food, shelter, and healthcare. The returnee will require

Official orders cannot force proper treatment at hospitals

THE Health Ministry issued a warning in the last week of March that no government or private hospital could refuse to provide treatment to any patient from now on. Later,

Tourism Industry Potential In The Post COVID-19 World

Taslim Ahammad :The global outbreak of coronavirus disease (COVID-19) has brought the world to a standstill, and tourism industry has been the worst affected of all major economic sectors. Hospitality

Checkmate! China's Coronavirus Connection

Simi Mehta :Coronavirus outbreaks in China and later across the globe have been unprecedented in both its scale and impacts. In the era of changing world order, this pandemic has

Private teachers` suffering should be paid heed to

With no salaries, the majority of teachers at private schools, colleges, and universities suffer in silence before Eid. This socially respected group cannot ask for help to the government or

Readers’ Forum

Treatment of General PatientsPatients with other diseases are at extreme risk of contracting COVID-19 infection. Several hospitals and clinics are partially or completely locked down due to corona infection. Many