EBL holds a emergency press conference on Thursday to clarify its position in response to a lawsuit filed by a customer over an alleged incident of fund embezzlement nine years ago. Eastern Bank has strongly refuted the allegation of fund embezzlement, which has been raised in a lawsuit filed by a customer, Murtoza Ali.
The bank said Mr Ali unjustly implicated its board of directors and management committee, insisting that they had no involvement in the fraudulent activities.
EBL denied the allegation at a press conference at its headquarters in the capital on Thursday.
The lawsuit was filed on February 26, eight years after the said incident.
Speaking at the press conference, EBL legal retainer barrister Omar Sadat said the case pertains to an incident of fund embezzlement that occurred in 2017, orchestrated by a former branch staff member in collusion with external fraudsters.
"It is important to note that upon uncovering the fraudulent activities, EBL took immediate and decisive action by filing a case against the guilty staff members and their associates," he said.
"The court subsequently convicted and penalised those responsible, sentencing them to imprisonment and imposing financial penalties."
Ali Reza Iftekhar, managing director and CEO of EBL, said, "The incident began in 2017. Murtoza Ali was a depositor at EBL and took a loan against his deposit in July 2017.
"Based on the loan application, the bank authorities approved the loan after verifying the collateral, all supporting documents, Ali's signatures, and ensuring compliance with all rules and regulations."
The loan approval letter was duly sent to the customer's address via registered mail. It is worth noting that Ali acknowledged the loan application, Mr Iftekhar added.
During the loan period, the bank said Ali was notified via SMS and his registered email by the Eastern Bank branch office to pay the monthly installments of the loan at various times.
Ali never contacted the bank regarding these notices. As a result, the loan installments became irregular, and on August 19, 2020, the bank authorities liquidated the customer's fixed deposit to settle the loan.
A clearance certificate was issued in favour of the customer and sent to his registered address via registered mail, which was acknowledged and received. After the liquidation of the deposit and repayment of the loan, the remaining balance of the deposit was credited to his bank account, according to the bank.
The lawsuit unjustly implicates members of the board of directors and the bank's management committee, despite their complete lack of involvement in the matter.
Furthermore, at the time of the incident, there was strong suspicion that the customer, who filed the lawsuit, may have had connections with the fraudsters.
The bank also said as per the standard practice, the board of directors and members of the management committee of the bank are not involved in the day-to-day transactions of customers.
Despite this, Ali intentionally filed a lawsuit with the aim of tarnishing the bank's reputation and concealing his own involvement in the incident. This appears to be a deliberate attempt to exert undue pressure on the bank.
EBL would take all necessary legal measures to safeguard its reputation and the integrity of its management and board, it stated.
The bank has urged all parties concerned to rely on verified facts and judicial outcomes rather than misleading claims.
sajibur@gmail.com
© 2025 - All Rights with The Financial Express
