• Thursday, October 02, 2014

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BASIC Bank

BASIC managers take pay cuts

BASIC managers take pay cuts

In an extraordinary move, BASIC Bank's top managers have forfeited a certain portion of their monthly gross salaries in a bid to minimise the operating costs in the face of financial tribulations. The bank's six deputy managing directors have given up Tk 30,000 each from their gross monthly salaries and the 12 general managers Tk 20,000 each -- a first in the country. “The management voluntarily took the initiative. There was no pressure from the board, but they appreciated the decision,” Mojib Uddin Ahmed, a director of the bank, told...

Editorial

Banks losing money again

SOME state-owned banks like BASIC appear to be unable to shake off malpractices. Such is its condition that repeated scandals running into thousands of crores of Taka are still being lost to bad loans. According to central bank data, the banking sector's default loans now stand at a little over Tk51,000crore of which BASIC bank alone accounts for over 2000 crore. Although banks across the board, including foreign owned institutions have recorded a rise in classified loans due to multifarious...

Default loans rise in April-June

Default loans rise in April-June

Banks' total default loans rose Tk 3,183 crore in the three months from March 31, with the scam-hit BASIC Bank accounting for almost 64 percent of the rise. On June 30, the banking sector's total default loans stood at Tk 51,345 crore, up 6.59 percent from the first quarter, according to data from the...

BB directives defied in fresh loan deals

BB directives defied in fresh loan deals

The Gulshan branch of BASIC Bank allowed fake and defaulter companies to swindle another Tk 1,000 crore in 2013, defying Bangladesh Bank's instructions to rectify its irregularities in disbursing around Tk 1,300 crore a year ago. The state-run bank disbursed the amount without following any rules, found the central bank that ran an investigation at the branch for the second time between January and June this year. “The possibility of getting back Tk 1,000 crore is bleak,” said the BB probe report. Though private deposits at the branch didn't increase, it disbursed loans the same way it did previously depending mostly on fixed deposit receipts (FDR) by state enterprises, said the report. The...

BASIC Bank being probed for money laundering

Bangladesh Bank is investigating whether any money laundering crimes were committed by BASIC Bank when it gave out loans using forged documents. BB's financial intelligence unit is looking into the matter and will forward the findings to the Anti-Corruption Commission (ACC), Abu Hena Mohammed Raji Hasan, deputy governor of the central bank, yesterday told reporters while announcing the monetary policy. The move comes after investigations by other departments of the central bank concluded that the bulk of the amount that was...

Ex-chairman in thick of things

Ex-chairman in thick of things

Former BASIC Bank chairman Abdul Hye Bacchu illegally influenced all activities of the state-owned lender, leaving the once-sound bank in a rickety state, revealed a report of Bangladesh Bank. The central bank report, which also contains the findings of the observer deployed at the bank for stopping gross irregularities, outlined how the government-backed chairman abused his power to play an active role behind the loan scam. As to whether BASIC directors were unlawfully involved in any administrative activities, loan sanction, write-off, interest waiver and rescheduling, the observer stated that the chairman "actively influenced every matter presented to the board". In November 2013, the central bank felt it necessary to appoint the observer...

BASIC Bank: Blatantly looted

BASIC Bank: Blatantly looted

The central bank has sent a report on the financial scam at BASIC Bank to the Anti-Corruption Commission, detailing how borrowers embezzled money from the state lender through fake companies and suspected accounts. Bangladesh Bank sent the report to the anti-graft body on Tuesday, after concluding a special inspection into the scam in the first week of this month. The central bank first inspected BASIC Bank's Gulshan, Shantinagar and Dilkusha branches in 2012 and found evidence of serious anomalies in approving loans. Dilkusha branch, for example, doled out Tk 683 crore in loans to 16 borrowers, all of whom took the money through illegal means. One borrower, Asif Iqbal, proprietor of Reliance Shipping...

BASIC Bank Anomalies

Board meeting minutes fake!

Some 106 agenda involving Tk 1,354 crore loan were included in the minutes, but were not at all discussed at the 327th board meeting of BASIC Bank in December last year. A total of 308 agenda were listed for the meeting, but the number shot up to 414 in the meeting minutes, as found by the Bangladesh Bank-appointed observer in the scam-hit public bank. His remarks on promoting two bankers to the post of deputy managing directors were grossly distorted in...

Editorial

BASIC Bank chairman resigning

Given the ruinous state a successful specialized state-run bank -- the BASIC Bank -- has been brought into, submission of resignation by its chairman Sheikh Abdul Hye Bacchu appears somewhat diversionary having regard to an outcry among knowledgeable circles for his dismissal and prosecution. There is no way one can trifle with the irregularities that sent the bank on a tailspin with a loss upwards of Tk.4,500 crore, as estimated by Bangladesh Bank This scandal has the familiar ring of...

Scam-Hit BASIC Bank

Board dissolved

Board dissolved

The government yesterday dissolved the infamous board of BASIC Bank over its role in financial irregularities that cost the state-run lender Tk 4,500 crore in the last four years. The seven-member board of BASIC (Bangladesh Small Industries and Commerce) Bank has been dismissed "on the basis of the investigation report of the central bank" on the scams in the bank, the Banking and Financial Institution Division of the finance ministry said in a circular. This is the second time the board of a state-run bank was fired for financial anomalies in a span of less than two years. In December 2012, the board of Sonali Bank was reconstituted following the Hall-Mark...

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