Bangladesh Bank has renamed The Farmers Bank Limited as Padma Bank Limited following a plea by the authorities of the scam-hit private bank.
The central bank in a circular on Wednesday said that as per the Bangladesh Bank Order, 1972 it changed the name of The Farmers Bank Limited with effect from January 29 (Tuesday).
The fourth generation bank initiated the move to change its name with a view to regaining public confidence for survival following loan scams and changes in its management and board of directors.
The new management, which took charge of The Farmers Bank after the forced resignation of its previous board’s chairman Muhiuddin Khan Alamgir and removal of managing director AKM Shamim, initiated the move, bank officials said earlier.
Bank’s new managing director Ehsan Khasru earlier told New Age that to revamp the image of the bank and to make the bank’s financial health better, the new management had taken a set of plans, including rebranding programme and launching ethical banking.
Under the ethical banking activities, Farmers Bank would not dishonour any cheque without any genuine reason, he said.
‘Along with that, we were also running four major programmes — restoration, deposit mobilisation, robust loan recovery and technology blanketing — with a view to becoming the safest bank among the private banks,’ Ehsan said.
In February last year, the then Farmers Bank that was awarded licence in 2013 on political consideration for its former chairman Muhiuddin Khan Alamgir, also a former home minister, sought bailout fund to overcome severe liquidity crunch stemmed from aggressive banking, loan irregularities, gross mismanagement and undue interference by the previous board of directors.
The bank has been failing to repay its depositors money, forcing government’s five institutions — four banks and one investment bank — to inject Tk 815 crore to improve the liquidity situation of the bank.
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