A day into the resignation of BASIC Bank chairman Sheikh Abdul Hye Bacchu, the finance ministry today dissolved board of directors of the bank and appointed Alauddin A Mojid as its chairman.

Mojid is currently serving as the chairman of Krishi Bank.

The ministry issued a gazette notification in this regard today, the ministry official confirmed to The Daily Star.

Bacchu, the main accused behind BASIC Bank's current financial straits, handed his resignation letter to Finance Minister AMA Muhith Friday night

The move comes just two months before the expiry of his second term as chairman of the troubled bank.

One of the best-run banks until 2009, BASIC Bank has been mired in financial irregularities since Bacchu assumed office in 2009.

During his tenure, the bank's indicators -- from capital adequacy ratio to nonperforming loans and credit rating -- went on a free fall. Curiously, despite this dismal performance, Bacchu was offered a second term in office in 2012.

It was in his new term that the magnitude of irregularities committed by the BASIC Bank board spearheaded by Bacchu grew larger. The irregularities amounted to upwards of Tk 4,500 crore, according to Bangladesh Bank (BB).

Said to be very close to the inner circles of the ruling Awami League, he single-handedly controlled the bank and granted loans in defiance of the recommendations of the bank's credit committee.

BB last month ordered BASIC Bank to stop loan activities at its Dilkusha, Shantinagar and Gulshan branches, where most of the anomalies took place. Earlier in May, it fired Kazi Faqurul Islam, BASIC Bank's managing director, for his failure to arrest the irregularities.