BASIC’s MD quits

Staff Correspondent | Published: 00:05, Aug 27,2018 | Updated: 00:02, Aug 27,2018

 
 

Muhammad Awal Khan has resigned as the managing director of scam-hit BASIC Bank on personal ground.
Alauddin A Majid, chairman of the state-owned BASIC Bank Limited, told New Age on Sunday that Awal Khan tendered his resignation at a meeting of the board of directors on August 14.
He (Awal Khan) showed personal ground for discontinuing the job, said the chairman, adding that his resignation was under process.
The board of directors would make a decision on the matter in the next meeting, he informed.
On October 24, the government appointed Awal Khan as the MD of the scam-hit BASIC Bank on a three-year contact.
Awal Khan, who also served as the MD of Rajshahi Krishi Unnayan Bank, started his banking career at Bangladesh Krishi Bank in 1982.
The bank insiders said that the MD was facing challenges in reviving the ailing BASIC Bank because of the scams perpetuated by previous board of directors led by Abdul Hye Bacchu through sanction of shady loans worth over Tk 6,000 crore from 2009 to 2014.
Most of the loans turned into bad loans, forcing the once profit making BASIC Bank to seek bailout fund from the government to meet its capital requirement.
The state-run bank suffered a loss of Tk 2,654 crore in the past four years, with 21 out of 68 branches failing to make any profit.
The government gave the bank over Tk 3,000 crore from the exchequer in the last four years despite huge criticism that the ‘taxpayers’ money was being drained into black holes.

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