BB serves notice on NRBC Bank chairman

Staff Correspondent | Published: 00:32, Jun 21,2017 | Updated: 00:38, Jun 21,2017


Bangladesh Bank has issued a show-cause notice to NRB Commercial Bank chairman Farasath Ali asking him to explain why he placed ‘false information’ before the central bank regarding the private commercial bank’s proposal to appoint independent directors.
According to the notice, board meeting’s minutes signed by Farasath informed the central bank that the shareholders of NRB Commercial Bank approved its proposal to appoint three independent directors in the bank’s board at the fourth annual general meeting of the bank.
The board of directors of the bank also subsequently approved the proposal, the minutes said.
But, BB general manager Md Masud Biswas, who was appointed as observer to the bank in December 2017, informed BB high ups that the bank’s shareholders had opposed the proposal to appoint independent directors at the AGM of the bank held on May 18, 2017.
The directors of the bank were also involved in a conflict over the proposal to appoint independent directors at the 54th board meeting.
The board of the bank is yet to take any decision on appointing the independent directors,
according to the BB observer’s report.
The bank presented the minutes of AGM and board meeting to the central bank on May 22, claiming that the shareholders and the directors approved the proposal to appoint the independent directors.
The central bank letter said that Farasath was responsible for giving ‘false information’ as he signed the distorted minutes.
The BB asked the NRB Commercial Bank chairman to explain within seven working days why he submitted ‘false information’ to the central bank.
Despite repeated attempts, Farasath could not be reached over mobile phone.
The BB has recently unearthed that the newly established bank disbursed Tk 701 crore violating credit discipline.
Against the backdrop, the BB earlier had issued a show-cause notice to NRB Commercial Bank managing director Dewan Mujibur Rahman asking him to explain why the central bank would not remove him from the bank for ‘failing to ensure the proper management and interest of depositors’.
Dewan Mujibur submitted his explanation to the BB and the central bank is working on it, BB officials said.

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