The Financial Express

BB bans ex-NRBC Bank chair

| Updated: July 07, 2020 18:06:35

File photo (collected) File photo (collected)

The Bangladesh Bank has prohibited former chairman of NRB Commercial Bank Farasath Ali from owning stake in any bank or non-bank financial institutions for two years for his alleged irregularities.

In an order, the central bank has imposed an embargo on Mr. Ali, the founding chairman of the fourth generation private bank, after three-years of investigations, said officials.

"We've imposed a bar on his involvement as director in any bank or non-banking financial institution for two years," Serajul Islam, spokesperson for the central bank, told the FE on Sunday.

Mr. Islam, an executive director of the BB, said Farasath Ali has failed to prove his innocence in the face of allegations leveled against him.

Mr Ali was forced to step down from the post of chairman of the bank on December 10, 2017 after allegations of irregularities emerged, including loan forgery.

He was also removed from the board of directors as the central bank did not give approval for continuing his role, because an inquiry was going on against his allegations.

More than three years ago, the central bank had served show-cause notices on the chairman and the managing director and chief executive officer of the NRBC Bank over their irregularities, including providing falsified information to the central bank.

On March 20 in 2017, the central bank authority sent the notice to NRBC Bank chairman asking him why appropriate action in line with the Banking Companies Act should not be taken against the bank for his irregularities.

The central bank in the notice also said it seems the board of directors failed to uphold the banking law to protect interest of the depositors and the public.

On December 06, 2017, the central bank ordered the removal of NRBC Bank CEO DewanMujiburRahmanon charges of sanctioning forged loans.

The NRBC Bank started its journey on April 02, 2013 with Tk 10 billion as authorised capital.


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