Alauddin Majid new BASIC chairman

BASIC Bank's former Managing Director Alauddin A Majid has been appointed the new chairman of the graft-hit bank.

The finance ministry issued a circular to this effect on Sunday.

Another circular dissolved the bank's board.

Chairman of the state-owned specialised bank Abdul Hye Bachchu resigned on Friday.

A day later, Finance Minister AMA Muhith said a "renowned banker" would be brought in to head the bank.

Majid, the current chairman of state-owned Bangladesh Krishi Bank, confirmed his appointment to bdnews24.com.

The veteran banker started his career as a agriculture economist (principal officer) in 1974 with the Bangladesh Krishi Bank. He was later promoted to the bank's deputy general manager.

He was the managing director of BASIC Bank between 1996 and 2001.

He joined the Rajshahi Krishi Unnayan Bank (RKUB) as general manager in 1990. From August 1992 to February 1993 he was RKUB acting managing director.

In December 1993, he joined BASIC Bank as its general manager. In 1996, he was made an acting managing director and a full director two years later.

State-owned BASIC Bank made headlines when allegations of loan irregularities at three branches amounting to Tk 40 billion surfaced.

Managing Director Kazi Faqurul Islam was removed on May 25 after the allegations were raised.

Bangladesh Bank found the allegations to be true in its investigation and on May 29 recommended dissolving the BASIC board.

Coming hot on the hill of the Hall-Mark scam involving another state-owned Sonali Bank, BASIC Bank’s loan fraud has become a source of embarrassment for the government.

Muhith said the government would revamp the board and warned that beleaguered Chairman Bachchu would not get off the hook if he were found involved with irregularities.