State-owned Agrani Bank’s MD Syed Abdul Hamid sacked

The managing director of Agrani Bank has been dismissed amid allegations of irregularities in loan distribution.

A Bangladesh Bank directive signed by Governor Fazle Kabir was sent to the government-run bank on Thursday.

“We have received the letter over removal of the managing director. Immediate action has been taken,” the bank’s Chairman Zaid Bakht told bdnews24.com.

He said that the decision came after irregularities in granting loans worth Tk 7.92 billion surfaced.

The governor greenlighted Hamid’s sacking on Wednesday after a central bank committee had forwarded its recommendation.

In January, the Bangladesh Bank instructed Agrani Bank to initiate steps against its Deputy Managing Director Mizanur Rahman Khan on allegations of his being involved in irregularities over loans given to Moon Group.

The bank had allegedly disbursed loans worth Tk 1.15 billion to the firm without any ‘valid documents’.

Allegations against Hamid

>>In 2011, a loan of Tk 1.2 billion was extended to Tanaka Tradecom International. It was approved by the board on the condition of a supplementary collateral to be kept as security with the bank. Tanaka later proposed changes to the condition, which Hamid approved without the board’s approval.

>>In 2015, Hamid rescheduled a Tk 110 million loan for the same company. It was shown as regular even after Tanaka had defaulted on repayment of Tk 460 million.

>>Hamid had renewed a letter of credit worth Tk 2 billion twice violating the bank’s risk management policy.

>>The MD had approved loans of almost Tk 3 billion for Sunmoon Group and its subsidiaries.

The Bangladesh Bank had pulled up Hamid over the allegations and he failed to come up with credible explanations.

A hearing began on the matter this month and on Jun 21, a Bangladesh Bank committee recommended his removal.

The finance ministry extended Hamid’s tenure in July last year despite the central bank’s objection.

Finance Minister AMA Muhith had then said that the central bank ‘does not know its business.’