Padma Bank allowed to pay Tk 55cr fine in half-yearly instalments

Staff Correspondent | Published: 22:38, May 03,2021

 
 

The Bangladesh Bank has allowed Padma Bank, previously known as Farmers Bank, to clear Tk 55 crore in penalty slapped on the bank for its failure to maintain mandatory cash reserve ratio for two years in half-yearly instalments.

The central bank gave the consent to Padma Bank at a recent board meeting held on April 12 with its governor Fazle Kabir in the chair. The penalty was imposed on the bank due to its failure to maintain CRR from 2017 to 2019.

‘The bank will be able to pay the fine in half-yearly instalments by 2025,’ said BB executive director and spokesperson Md Serajul Islam.

The BB on March 31 waived Tk 89 crore in penalty for the bank, which was slapped for the bank’s failure to maintain the statutory liquidity ratio.

On March 31, the BB issued a gazette notification, exempting Padma Bank from complying with section 33 of the Bank Company Act, 1991 under which maintaining SLR is a must for all the banks and any failure to maintain the SLR is a punishable offence.

As a result of the waiver from the section, the bank got exemption automatically from the penalty.

The central bank granted the exemption to Padma Bank after receiving opinions from the finance ministry.

In November 2019, Padma Bank had applied for waiving Tk 144 crore levied for failure to maintain the cash reserve ratio and the statutory liquidity ratio in 2017 and 2019.

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