Oriental Bank depositors in trouble as all withdrawals restricted
Wednesday, 1 August 2007
FE Report
A large number of clients of Oriental Bank Ltd. are not being able to withdraw either their principal amount or the interest (profit) accrued against their term deposits since a six-month moratorium was imposed on the transactions in January which was again extended by another six months in June.
According to Oriental Bank sources, the management stopped payment of interests against term deposits immediately after announcement of the moratorium on January 25 by the Finance Division. As no clear directives has been issued regarding the payment of interest during the post-January 25 period, the bank had to take their own decision until Bangladesh Bank comes up with a salvage plan, the source added.
Deposit account holders are, however, being allowed to withdraw a maximum of Tk.10,000 from their principal deposit amounts only, according to the internal decision of the Oriental Bank. But no restrictions will apply for those who opened accounts after January 25.
M A Halim of city's West Tejturi Bazar said, "against my fixed deposit of Tk 1,500,000 I could withdraw interest of Tk 12,000 each month. But after imposition of moratorium in January, I thought I would be allowed to withdraw Tk 10,000 as per government order, but now the bank management is refusing to pay me any money."
"I am now helpless as it was my main source of income," Halim (65) told the FE.
Another client Peer Mohamad of city's Saheen Bagh area said the bank officials of Kawran Bazar is refusing to pay him interest against his fixed deposit no 132836/5324/06 on Tk 200,000, which matured last month.
When asked whether the bank itself, without any government order, can take such a decision, the oriental bank official said they have taken the decision in consultation with the authority concerned of the central bank.
However, talking to the FE, a senior central bank official said the Oriental bank has not been given any such directive from the Bangladesh Bank.
Oriental Bank sources said since they are not sure about the central bank's final decision on interests accrued during post-Jaunary 25 period, so they have to careful in such payments as it might lead to complications like reversing profits later on.
A large number of clients of Oriental Bank Ltd. are not being able to withdraw either their principal amount or the interest (profit) accrued against their term deposits since a six-month moratorium was imposed on the transactions in January which was again extended by another six months in June.
According to Oriental Bank sources, the management stopped payment of interests against term deposits immediately after announcement of the moratorium on January 25 by the Finance Division. As no clear directives has been issued regarding the payment of interest during the post-January 25 period, the bank had to take their own decision until Bangladesh Bank comes up with a salvage plan, the source added.
Deposit account holders are, however, being allowed to withdraw a maximum of Tk.10,000 from their principal deposit amounts only, according to the internal decision of the Oriental Bank. But no restrictions will apply for those who opened accounts after January 25.
M A Halim of city's West Tejturi Bazar said, "against my fixed deposit of Tk 1,500,000 I could withdraw interest of Tk 12,000 each month. But after imposition of moratorium in January, I thought I would be allowed to withdraw Tk 10,000 as per government order, but now the bank management is refusing to pay me any money."
"I am now helpless as it was my main source of income," Halim (65) told the FE.
Another client Peer Mohamad of city's Saheen Bagh area said the bank officials of Kawran Bazar is refusing to pay him interest against his fixed deposit no 132836/5324/06 on Tk 200,000, which matured last month.
When asked whether the bank itself, without any government order, can take such a decision, the oriental bank official said they have taken the decision in consultation with the authority concerned of the central bank.
However, talking to the FE, a senior central bank official said the Oriental bank has not been given any such directive from the Bangladesh Bank.
Oriental Bank sources said since they are not sure about the central bank's final decision on interests accrued during post-Jaunary 25 period, so they have to careful in such payments as it might lead to complications like reversing profits later on.