Muhith rules out BASIC Bank’s image crisis

Finance minister AMA Muhith ruled out the possibility of a negative impact on the image of BASIC bank after the resignation of its managing director.

Muhammad Awal Khan tendered his resignation on August 14, citing physical illness and personal engagements.

"No, the bank won't face any problem. It (resignation) is totally irrelevant to me," the minister told reporters at his secretariat office.

Asked whether any tussle between the board of directors and the managing director led to his resignation, the minister said that is their internal issue. "Ask the chairman. I did not inquire him about it.' The resignation letter of Mr Khan will be placed before the board of directors at a meeting on August 30.

He was appointed as managing director of the bank in November last year for a period of three years.

Before that Mr Khan worked as managing director of Bangladesh Krishi Bank, and Rajshahi Krishi Unnayan Bank (RAKUB).

BASIC bank was once a healthy bank, but it became financially weak during the 2009-2013 period after Tk 45 billion was allegedly swindled. A section of directors of the bank in connivance with the officials looted the money in the name of granting loans to businesses and individuals by submitting forged documents.

The bank is now facing trouble and the amount of classified loans reached astonishingly high.

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