Bangladesh Bank has started the process for removal of NRB Commercial Bank managing director Dewan Mujibur Rahman following a number of loan scandals in the bank, said officials on Tuesday.
BB officials said that the central bank took the move as it did not find satisfactory the explanations Dewan gave in the recent BB hearings on the scams.
Earlier in October, a BB standing committee questioned Dewan about the loan scams involving around Tk 700 crore in a hearing at the BB headquarters.
The committee recommended removal of Dewan.
When asked about the BB move of his removal, Dewan said that he had not been informed and he was yet to receive any letter from the central bank.
Last year, BB inspection teams found that NRBC Bank sanctioned Tk 701 crore in loans flouting rules and regulations.
The government approved the bank in 2013 with the aim of attracting investment from NRBs to the bank.
But the bank’s nonperforming loans stood Tk 194 crore at the end of third quarter of this year, up from Tk 128 crore a year earlier as the bank is struggling to recover the shady loans it gave earlier.
BB earlier this month asked Farmers Bank to remove its managing director AKM Shamim for the bank’s failure to manage liquidity.
But, the Farmers Bank chairman Mohiuddin Khan Alamgir and executive committee chairman Md Mahbubul Haque Chisty resigned from their posts while Shamim remained in his office following an appeal to the central bank.
Want stories like this in your inbox?
Sign up to exclusive daily email
More Stories from Banking