BASIC Bank chair pins hopes on new board
FE Report | Tuesday, 8 July 2014
Newly-appointed BASIC Bank Limited Chairman Alauddin A Majid said his new board will do everything possible for improving the financial health of the trouble-torn bank.
"Our main challenge is to improve the financial health of the bank," the BASIC Bank chairman told the FE at the bank's headquarters in Dhaka Monday.
He also said the new board will work to restore the depositors' confidence by establishing good governance and improving the quality of services.
"We'll take necessary measures against mismanagement and irregularities in line with the decision of the board," he said while replaying to a query.
Mr. Majid also said the new board will work for restoring the image of the state-owned bank.
The Bangladesh Bank (BB) earlier found different types of irregularities in BASIC Bank in giving loans, which include non-verification of customers' creditworthiness, absence of 'know your customer' (KYC) procedures, and extending loans to defaulters.
The central bank investigations detected financial irregularities involving around Tk 45 billion of loans in the bank's three branches - Gulshan, Dilkusha and Shantinagar - in Dhaka between 2009 and 2013.
BASIC Bank was one of the best state-run banks until 2009, when the government appointed Sheikh Abdul Hye Bachchu as the chairman, according to the BB officials.
The Ministry of Finance (MoF) Sunday dissolved the board of BASIC Bank, accepting his resignation letter, tendered to Finance Minister AMA Muhith Friday.
MoF appointed four directors in the graft-hit bank Monday. The Bank and Financial Institutions Division (BFID) of MoF issued a circular in this connection.
Sources said two more directors will be appointed today (Tuesday).
The newly-appointed directors are: Hasan Mahmud FCA, Rayhana Anisa Yusuf Ali, former managing director of Bangladesh House Building Finance Corporation, Mamun Al-Rashid, joint secretary of BFID and Dr. Mujib Ahmed, a professor of Accounting and Information System Department of University of Dhaka.
MoF is waiting to get clearance from the central bank to appoint two more directors in the bank -- Begum Parag, an additional secretary of the Ministry of Industries, and Md. Anisuzzaman, former deputy managing director (DMD) of Bangladesh Commerce Bank Ltd.