Jubilee Bank, one of Bangladesh's oldest bank, is headed towards liquidation

Bangladesh Bank is set to liquidate the century-old non-scheduled Jubilee Bank in line with a High Court order over various complications regarding its ownership.

The central bank has already removed its Chairman Md. Shah Alam and dissolved the working committee, which was formed to ensure the smooth functioning of the non-scheduled bank, according to an official order issued on December 27.

The High Court has also called for liquidation of the bank, said a high official of the central bank seeking anonymity. 

“We are now waiting for the final verdict of the High Court,” said the BB official.

The bank was first registered by the Joint Stock Companies and Firms (RJSC) in April 1913 as Khoksha-Janipur Bank. Then in January 1987 the name was changed to Jubilee Bank. 

The central bank recognised it as a non-scheduled bank in June 1984. 

Bangladesh has four other non-scheduled banks -- Ansar VDP Unnayan Bank, Karmasangsthan Bank, Grameen Bank and Palli Sanchay Bank -- with operations on a limited scale.

The bank is situated in Khoksa, Kushtia and with one branch and the bank’s assets are worth around Tk 3 crore alongside paid-up capital of Tk 1 crore. Seven or eight employees are working in the bank under a manager. 

Initially, the bank started its banking business and disbursed loans through mortgaging gold. Then, the central bank allowed it to lend up to a maximum of Tk 25,000 crore to small traders, cottage industries and farmers. 

The bank gained some criticism for having shares owned by Colonel Khandaker Abdur Rashid, Colonel Syed Farooq Rahman and Major Bazlul Huda as they were the convicted assassins of Bangabandhu Sheikh Mujibur Rahman.

Md. Shah Alam, an executive director of the central bank, was appointed an independent chairman of the bank on August 30, 2018 in line with a High Court verdict. 

“I have received the removal letter from Bangladesh Bank,” Alam told Dhaka Tribune yesterday. 

He was dispatched to the bank to organise the pending the annual general meetings as per the High Court order.

“The bank has several shareholder-related problems,” he added. 

Since 2009, no AGM has been held owing to the conflict among the board members, which has led to the court case, said a member of the working committee for the bank.