Asaduzzaman to continue as Oriental MD for one more year

FE Team | Published: June 14, 2007 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report
The central bank of Bangladesh has appointed its Executive Director Asaduzzaman Khan as Managing Director (MD) of the Oriental Bank Limited for one more year to continue to improve the financial health of the private commercial bank (PCB).
The Bangladesh Bank (BB) issued an order Wednesday in this connection and sent the order to the chairman of the board of directors of the PCB for taking necessary measures.
'We have appointed Mr. Khan as MD of the Oriental Bank Limited for one more year in line with the existing Banking Companies Act,' a BB senior official told the FE.
The Oriental Bank has been able to improve its financial condition during the last one year following appointment of an administrator by the central bank to protect the depositors' interest.
The monthly operating costs of the 'problem' bank dropped to Tk 21.7 million (2.17 crore) from Tk 47.1 million earlier while its cash liquidity stood at Tk 830 million as of May 31 last from almost zero in June last year, according to statistics.
The costs have been reduced mainly thanks to streamlining the expenditure approval process of the bank, sources in the Oriental Bank said.
Besides, the non-performing loans of the bank were reduced to 63 per cent as of May 31 last from 75 per cent of June 19, 2006 while a total of Tk 5.41 billion loans were recovered from their clients.
The current management of the bank is continuing their recovery drives to improve the financial health of the bank.
The provisioning shortfall fell to Tk 6.57 billion in April last from Tk 10.43 billion as on June 19 last.
The authorities of the private commercial bank have taken disciplinary action against 25 employees for their alleged involvement in different fraudulent practices including sanctioning fake loans.
Of them, 14 employees were dismissed, three terminated and eight others under suspension, the sources confirmed.
The BB took over the overall management of the bank and appointed an administrator on June 19 last to protect the depositors' interest.
On August 06, 2006, the central bank ordered removal of the MD of the PCB and superseded its board of directors' function for one year.