Tk 226m withdrawn from National Bank after 8pm 

A whopping Tk 226 million was disbursed in loans from the Gulshan corporate branch of National Bank after 8:00 pm on 28 December, though the official banking transaction period ranges from 10:00 am to 3:30 pm.  

The entire amount went to a single client in cash, the Bangladesh Bank (BB) said in a letter that marked the transaction as a sheer violation of the banking rules. 

In the letter, the central bank also directed to take punitive measures over the transaction, saying that the concerned officials have committed serious irregularities by making the transaction beyond the stipulated time. It is a punishable offence. 

Infratech Construction Company is the lucky client that availed of the special lending privilege. On 28 December, the National Bank board of directors approved the loan renewal proposal in the afternoon and the approval was forwarded to the Gulshan branch at 6:50 pm. Later, the entire amount was withdrawn between 8:23 pm and 9:04 pm. 

Mehmood Hossain, managing director of National Bank, confirmed that they received the central bank letter and are working on it. 

“We have received a letter in this regard. A reply will be given within the stipulated time,” he said. 

The proposal to renew a loan in favour of Infratech Construction was placed before the 475th meeting of the National Bank board on 28 December. 

According to the proposal, the client defaulted on the loans taken some other banks and opened letters of credit worth Tk 478 million beyond the limit. If the loan renewal proposal is accepted, it will be able to withdraw another Tk 226 million from the bank. 

Noticing the proposal on the meeting agenda on 27 December, the central bank-appointed coordinator to National Bank, Sayful Islam, sent a letter of objection to the bank’s chairman Monowara Sikder and concerned officials via e-mail. He also reported the issue to the concerned department of the central bank. 

Despite all these efforts, the loan proposal secured the board’s clearance and the meeting minutes do not contain the issue of the coordinator’s objection. 

Chairman Monowara Sikder is now undergoing treatment at a hospital in the United States while executive committee chairman Parvin Haque Sikder did not attend the board meeting. Director Rick Haque Sikder chaired the board meeting on the day. The officials apprised the meeting of the central bank’s objection, but it cleared the way for the loan renewal proposal. 

Infratech Construction Company withdrew Tk 226 million from the bank’s Gulshan branch immediately, in five transactions. 

Bangladesh Bank issued a letter to the National Bank managing director, saying that the officials committed a serious breach of rules by making the cash transaction after 8:00 pm.  

The central bank asked to explain how the client’s loan crossed the authorised LC ceiling of Tk 1 billion. Also, it asked to explain why punitive measures will not be taken against the officials concerned with the loan transaction after 8:00 pm. 

A Bangladesh Bank official said action will be taken after getting an explanation from National Bank. The bank earlier enjoyed leniency in many cases, but it would not happen now.