BB governor okays Agrani MD sacking

Bangladesh Bank on Wednesday decided to remove Agrani Bank managing director Syed Abdul Hamid from his post on a charge of his involvement in a number of loan scams involving Tk 792 crore.
A BB official told New Age on Wednesday that the central bank governor, Fazle Kabir, approved a BB standing committee recommendation to remove Hamid in line with the article 46 of Bank Company Act 1991.
Hamid who became Agrani Bank MD in July 2012 was also responsible for the defaulted loans of Tk 435 crore in the state-owned bank.
The BB standing committee led by deputy governor Abu Hena Mohd Razee Hassan on June 21 submitted the recommendation to the central bank governor to remove Hamid after interrogating the Agrani Bank MD in a personal hearing in June 13-15 at the BB headquarters in the capital.
The central bank will issue today (Thursday) a letter to Hamid, whose contractual appointment is scheduled to expire on July 10, in this regard, the BB official said.
The removal will be the second instance of such action against managing
director of a state-owned bank. The central bank earlier had removed former BASIC Bank managing director Kazi Fakhrul Islam due to his involvement in loan scams.
The BB official said the central bank framed a Tk 792-crore corruption charge against Hamid although the BB’s inspection departments found that he had disbursed and renewed more than Tk 1,000 crore to different persons and business groups violating rules and regulations.
At the personal hearing, the standing committee asked Hamid why he disbursed and renewed the loans, and changed the amount of mortgage violating the Agrani Bank Credit Policy and the Credit Risk Management Policy 2013. In reply, Hamid said the decisions were made in line with the Agrani Bank Delegation of Discretionary Powers 2002.
The BB official said that the management of the state-owned bank led by Hamid was yet to implement the latest credit policy and the credit risk management policy although the Agrani Bank board approved the policies in 2013.
Hamid told the standing committee that he had followed the Delegation of Discretionary Powers 2002 in line with footnotes of credit policy and credit risk management policy 2013.
The credit policy and the credit risk management policy 2013 empowered Hamid to disburse and renew loans amounting to maximum Tk 1 crore, but he frequently violated the rules.
Hamid was supposed to have taken approval from the board of Agrani Bank to disburse and renew loans worth more than Tk 1 crore.
The BB served a notice on Hamid on June 2 this year, asking him to attend the personal hearing as his explanation against the BB’s show-cause notice issued on February 17 failed to satisfy the central bank.
The BB issued the show-cause letter to Hamid asking him to explain by March 3 why the central bank would not remove him from the managing director post of Agrani Bank in line with the article 46 of Bank Company Act 1991.
Hamid submitted his reply to the central bank’s show-cause notice on March 16, declining any involvement in the loan scams.
The latest BB move against Hamid came as the central bank’s inspections at Agrani Bank’s main branch in Dhaka, and Asadganj and Laldighi East branches in Chittagong established the allegations against him.
In 2011, a loan amounting to Tk 120 crore was extended to Tanaka Tradecom International from the bank’s main branch, according to the BB show-cause notice.
The loan was approved by Agrani Bank’s board with the condition that supplementary collateral must be kept as security with the bank.
Tanaka Tradecom later proposed changes to the condition, which Hamid approved without the consent of the bank’s board.
Later in 2015, he renewed cash-credit loans of the company amounting to Tk 10.79 crore — a decision he was not authorised to make.
An amount of Tk 49 crore out of the disbursed loan (Tk 120 crore) to Tanaka Tradecom International has already become defaulted.
In another instance of violation, Hamid rescheduled a Tk 42.38-crore fund for Muhib Steel and Ship Recycling Industries, which was already classified as bad loan.
Besides, Muhib Steel was given letters of credit facility time and again, which took its total outstanding credit amount with Agrani Bank to Tk 91.93 crore. The entire amount has now been classified as bad loan category.
Serious irregularities were also committed by Hamid while disbursing loans to Mizanur Rahman Mizan, a customer of Agrani Bank’s main branch, and various companies linked to the client’s Moon Group.
The outstanding loans of Moon Group now stands at Tk 300 crore and Tk 284 crore has already entered in the defaulting zone.
Hamid also violated the rules and regulations in disbursing loans of Tk 193.19 crore to Mahid Apparels Ltd, Tk 124.18 crore to Marhaba Synthetic Textile Mills Ltd, Tk 20.91 crore to MRL Ship-breaking Ltd and Tk 31.27 crore to Mismac Ship-breaking Industries.
Some Tk 10 crore out of the disbursed loan to MRL Ship-breaking Ltd has already become defaulted.

News Courtesy: www.newagebd.net