Bangladesh Bank has reconstituted the boards of directors of three private banks in its latest move to reform troubled financial institutions.
This marks the central bank’s second initiative to overhaul the boards of struggling banks.
The three banks are NRBC Bank PLC, NBR Bank PLC and Meghna Bank PLC.
In the newly formed board of NRBC Bank, former Krishi Bank Managing Director Md. Ali Hossain Prodhania has been appointed as Chairman. Other board members include former Bangladesh Bank Executive Directors Md. Abul Bashar and Md. Anowar Hossain, former Sonali Bank Deputy Managing Director Md. Nurul Hoque, Supreme Court lawyer Barrister Md. Shafiqur Rahman, American International University–Bangladesh (AIUB) Professor Dr. Syed Abul Kalam Azad, and Chartered Accountant Muhammad Emdad Ullah.
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At NBR Bank PLC, entrepreneur-shareholder Iqbal Ahmed has been appointed as Chairman. The new board consists of former Grameen Bank Board Member Ferdous Ara Begum, former Bangladesh Bank Executive Director Sheikh Md. Selim, former Mercantile Bank Managing Director Md. Kamrul Islam Chowdhury, former Prime Bank Deputy Managing Director Sheikh Matiur Rahman, North South University Professor Sharif Nurul Ahkam, and Chartered Accountant Mizanur Rahman FCA.
Meanwhile, the restructuring of Meghna Bank's board is still in progress.
According to insiders, Bangladesh’s banking sector has been grappling with a prolonged crisis, which has intensified over the last two years.
Key issues include the dominance of influential groups over bank management, misappropriation of funds under the guise of loans, large-scale money laundering, mounting defaulted loans, severe liquidity shortages and the ongoing dollar and foreign reserve crisis.
Following the change in government on August 5, Bangladesh Bank dissolved the boards of 11 banks, including Islami Bank—formerly controlled by the S Alam Group—and appointed new boards.
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This latest intervention marks the second restructuring effort by the central bank under the tenure of Governor Dr. Ahsan H. Mansur.