Inspect NRB Commercial Bank, court asks BB

The High Court asked Bangladesh Bank to carry out an inspection of NRB Commercial Bank after allegations of irregularities were brought by a director of the bank. Barrister M Ashraful Islam, a lawyer for AM Tushar Iqbal Rahman, the director, confirmed the HC order issued on Thursday.

The bank was founded in 2013 by a group of expatriate Bangladeshis living in different countries.

Taking loans by directors in fictitious names, and forging signatures of some directors who live abroad and did not come to Bangladesh in the last three years were the major allegations against the bank's Chairman Farasath Ali, Vice-chairman Toufique Rahman Chowdhury and Managing Director Dewan Mujibur Rahman.

Other irregularities include allowing borrowers to attend board meetings and lavish spending in decoration of bank branches.

"The High Court has directed the central bank to carry out an inspection under section 44 of the Bank Companies Act 1991," Islam said.

He said the court order came after the central bank failed to investigate the allegations.

A BB official, however, said they are yet to get the court order and declined to comment further.

On May 26, AM Saidur Rahman, the nominated director of AM Tushar Iqbal Rahman on the board of NRB Commercial Bank, lodged complaints with the central bank against the irregularities. "I don't know anything about the court order," Ali, the chairman, told The Daily Star yesterday.

Ali also said he has no idea about the allegations.