The central bank ordered Wednesday the removal of NRB Commercial Bank Managing Director (MD) and Chief Executive Officer (CEO) Dewan Mujibur Rahman on charges that include wrongful lending.
In a further punitive measure, he is also barred from taking job in any banks for two years from now on.
"We've removed the NRB Commercial Bank's MD along with the imposition of a bar on his taking employment, directly or indirectly, at any bank for a period of two years," said Subhankar Saha, a spokesperson for the Bangladesh Bank (BB).
Mr. Saha, also executive director of the BB, told the FE that the central bank had already sent the orders to the authorities concerned of the bank for taking action.
BB Governor Fazle Kabir issued the marching orders of the chief executive of the bank of non-resident Bangladeshis as per recommendations made by the central bank standing committee.
The BB's standing committee had recommended the removal of the NRB Commercial Bank Limited (NRBCBL) MD and CEO as his (Rahman's) statement was not accepted by it, according to another BB official.
The central bank earlier had formed the four-member standing committee, headed by its Deputy Governor Abu Hena Mohd Razee Hassan, to hear the MD's representations regarding his alleged involvement in different loan-sanctioning irregularities and other wrongs.
In October last, the central bank served a notice on Mr. Rahman asking him to attend a personal hearing as his explanation against the show-cause notice issued on March 20 this calendar year failed to satisfy the BB authorities.
The BB notice had carried 10 counts of charges, including sanctioning loans by violating rules and regulations, signature forgery, interference of outsiders in the board, and corruption, according to the central bankers.
All the irregularities were inter-linked and took place with the involvement of the board and the management. As MD and CEO, Mr. Rahman never informed the central bank about the irregularities, the show-cause notice reads.
In the notice, the BB had also asked him why the central bank should not remove him from the post of NRB Commercial Bank MD and CEO in line with Article 46 of the Banking Companies Act 1991.
If he felt aggrieved by the action of the central bank, issued under Section 46 of the Bank Companies Act 1991, he may appeal to the Board of Directors of BB against the orders.
The BB found out that the directors of the NRBCBL and other parties were involved in irregularities in the sanctioning of loans worth around Tk 7.0 billion in breach of rules and regulations.
The central bank inspections carried out between June and December last calendar year found that four of its directors -- all non-resident Bangladeshis (NRBs) -- were shown present at board meetings in 2013-2016 though they were actually abroad at that time.
Earlier on December 29 last year, the central bank had appointed an observer to the NRBCBL for improving its financial health through ensuing good governance in the bank.
The NRBCBL started its journey on April 02, 2013 with Tk 10 billion as authorized capital.
This happens to be a latest event of top-level changes in a number of banks, and close on the heels of shakeup in the management of Farmers Bank.
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