Mother Textile: Rupali’s rescheduling bid disgraceful: TIB
Transparency International Bangladesh (TIB) yesterday came down heavily on state-run Rupali Bank for its decision to reschedule a loan of Mother Textile bypassing all rules.
In a statement, TIB Executive Director Iftekharuzzaman requested the central bank not to give approval to the rescheduling proposal, calling the decision taken by the Rupali board highly disgraceful.
He suggested taking punitive action against the board of directors for their involvement in giving consent to the proposal.
According to a media report, Mother Textile did not show any interest in paying back loans despite getting rescheduling facility seven times.
“Despite that the state lender waived the whole interest amount of Tk 440 crore incurred by the company and also extended the repayment period to 2040, which is unprecedented,” said Iftekharuzzaman.
The bank even has not taken minimum down payment from the company while approving the rescheduling proposal.
The proposal, which has been sent to the central bank for approval, indicates that the board of Rupali Bank has its hands tied by the vested quarter and has lost professionalism completely in taking decisions.
“The central bank should not limit its stance only by rejecting the proposal. Rather it should verify the whole matter to see why the unlawful proposal has been submitted by the Rupali board,” Iftekharuzzaman said.
If required, the central bank should take stern action against the board if it is found that there has been conflict of interest in making the rescheduling recommendation, he said. The TIB also reiterated its demand of forming an independent commission with a view to resolving the existing “dreadful crisis” in the banking sector.
“An unholy alliance has acted to protect the interest of the habitual defaulters in the banking sector. There is no option but to form an independent banking commission to rein in the alliance.”
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