NRB Bank MD resigns under pressure of 'Benami loans'

NRB Bank MD resigns under pressure of ‘Benami loans’

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This time, the Managing Director (MD) of NRB Bank, formed by expatriate businessmen, has resigned. He resigned about two weeks before the contract was due to expire. Earlier, four bank MDs resigned last year. Among them, three MDs have been reinstated by the Central Bank.

According to reliable sources of NRB Bank, due to the pressure of some directors, the bank sanctioned several loans in the last few months, which are not being collected regularly. Recently, several other institutions have been pressured to give money, most of which are anonymous loans. Due to this benami loan, the MD resigned.

The bank’s MD Mamun Mahmud Shah did not admit it, but told Prothom Alo, “I resigned before the end of the term due to the lack of work environment in the bank.” He did not want to say anything more.

Bangladesh Bank, formed in 2013 by expatriates, allows three banks to operate in the country, one of which is NRB Bank. Among the three banks, NRB Bank was formed by the initiative of genuine expatriate businessmen. Local businessmen were also associated with the other two.

Although NRB Bank was formed on the initiative of expatriate businessmen, many of the directors now live permanently in the country. Again, many of the main entrepreneurs of the bank have moved away from the bank. As a result, it is alleged that the entire bank has become a hostage in the hands of one party. However, in the last three years, the bank has progressed in various indicators. Meanwhile, the MD resigned.

Behind the resignation
According to NRB Bank documents, a working capital loan of Tk 55 crore was approved in the name of Alliance Hospital on September 18 last year. The hospital is run from a rented building, with no collateral against the loan. The recovery of the loan has already become irregular.

Similarly, in August last year, the newly registered Varun Corporation was approved for a loan of Tk 19 crore. The bank is not getting this loan back regularly. Last August, a company named Bela Agro was given four crore rupees. This loan has already become unpaid. Several other such loan proposals came to the bank recently, which pressured the management authorities for approval. It is known from various sources of the bank that the MD resigned due to this.

Mamun Mahmood Shah joined NRB Bank as Managing Director on February 3, 2021. His term ended on February 2. However, in his resignation letter submitted to the chairman of the bank on January 21, the MD mentioned that due to personal reasons, he is unable to work in NRB Bank for the duration of his tenure.

According to another source of the bank, after the founding chairman of the bank, Iqbal Ahmed, was strategically removed from the post of the bank’s director, anonymous loans started to be generated. Some directors of the current board of directors of the bank got involved with this. Some of them are working full time in the bank. Most of the current directors belong to a group.

When contacted, Chairman of NRB Bank Mohammad Mahtabur Rahman told Prothom Alo, ‘MD Sahib has fallen ill due to leg pain. For this, he left the bank two weeks before the expiry date. He is a good person. The bank has improved a lot. If necessary, we can make him MD again.

Financial situation
Among the fourth generation banks, NRB Bank is the only one not involved in aggressive banking. In 2021, the amount of deposits and loans of some of the approved banks exceeded Tk 20,000 crore, but NRB Bank did not go that way. In 2021, the bank’s deposits were Tk 4,475 crore, which increased to Tk 6,685 crore at the end of last year. In 2021, the bank’s debt was Tk 4,240 crore, which at the end of last year was Tk 6,700 crore. Out of this amount of defaulted loans is Tk 300 crore or 5 percent.

The bank made a net loss in 2019 but made a profit of Tk 63 crore in 2021. Which in 2022 is slightly reduced to 55 crore taka. Last year the bank made an operating profit of Tk 144 crore.

According to the prothomalo

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