High Court stays appointment of observer for Farmers Bank

The High Court has stayed for two weeks the appointment of a Bangladesh Bank observer for Farmers Bank Limited.

The court has also asked the central bank on Sunday to explain within a week why the appointment order should not be declared illegal.

The next hearing is scheduled for Feb 17.

The Farmers Bank challenged the central bank order appointing General Manager ANM Abul Kashem as observer in mid January after irregularities to the tune of Tk 4 billion came to the fore.

Bangladesh Bank had said the move was aimed at improving Farmer Bank’s ‘internal management’ and ensuring financial discipline.

Farmers Bank, which secured its licence in June 2013 with eight other banks, has 38 branches.

Former home minister and Awami League MP Mahiuddin Khan Alamgir is the bank's main sponsor.