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Explain fund mismatch

BB asks Union Bank

FE REPORT | September 24, 2021 00:00:00

Bangladesh Bank Thursday sought explanation from Union Bank over an alleged fund mismatch involving Tk 190 million from its Gulshan-branch vault.

The central bank's latest move comes three days after its inspection team found the bungling during a visit to the Gulshan branch of the fourth-generation bank.

Clarifying its position, the bank, however, in a statement said recent media reports over the bank-money missing drew attention of the management.

"It's a matter of misunderstanding of facts by the media," it said.

Explaining the issue, the press note said one of their valued clients came to the branch to get cash after the banking hours.

Considering importance of the client and bank-customer relationship, the branch gave the client money against a cheque which was adjusted the following day in presence of the BB audit team through depositing the cheque.

"So no incident of money mismatch happened," it added.

Talking to the FE, deputy managing director of the bank Hasan Iqbal said the money was given to a VVIP customer on Sunday and the client handed over a cheque to this effect but was not readjusted as the banking hours were over by then.

The following morning, an inspection team of Bangladesh Bank (BB) visited the Gulshan branch of the bank and did not find the amount in its vault, he said.

Later, the amount was adjusted in presence of an inspection team of Bangladesh Bank, Mr Iqbal said.

"Although banking rules were violated through the transaction, such practices are not new. Such transactions are for customer-bank relationships," the DMD said.

For the sake of corporate governance, the bank authorities withdrew three of its officials of the branch before forming a three-member probe committee to this effect.

The committee was asked to submit its report within seven working days, the bank sources said. The news of missing money from the bank vault of Gulshan branch hit the media headlines recently, making it talk of the country.

The DMD claimed that the bank has been operating its activities giving high focus on corporate governance, transparency and accountability since its inception in 2013.

When contacted, BB spokesperson Md. Serajul Islam said the central bank had already sought explanation from the bank about the matter.

"We'll take next course of action after receiving their clarification," he added.

Seeking anonymity, a senior BB official said the central bank asked the Union Bank management to submit their clarification by September 28.

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