Agrani Bank director removed before the end of his term

A letter was sent by the Ministry of Finance to Bangladesh Bank (BB) regarding the premature removal of Dr Md Faraz Ali as a director of the state-owned Agrani Bank.

His term as director was due to end on August 21 next year but is now being replaced by Biswajit Bhattacharya, additional secretary of the Ministry of Finance.

In this regard, Bangladesh Bank will soon inform of their consent to the Ministry of Finance.

Serajul Islam, executive director and spokesperson of Bangladesh Bank, confirmed the matter to Dhaka Tribune.

Regarding the new director of Agrani Bank, Serajul Islam on Tuesday said: "It is true and a letter has come from the ministry about this.” 

“And when their letter arrives, there is usually no problem with the approval of Bangladesh Bank,” he added.

It's informed that at a recent meeting of the Financial Institutions Division of the Finance Ministry, the decision to appoint Biswajit Bhattacharya for the post of director of Agrani Bank was finalized.

Meanwhile, Biswajit Bhattacharya was unavailable for comments on his new appointment. 

About the removal of Faraz Ali from the post, Sheikh Mohammad Salim Ullah, secretary of the Financial Institutions Division told: "The government thinks he is not needed, so he has been removed."

However, he did not want to say anything more about the reason for Faraz Ali’s removal.

According to a source, some of the directors and part of the managing authority of Agrani Bank were angry with his role in the board of directors of Agrani Bank. 

Faraz Ali recently disagreed at a board meeting regarding an issue about disbursing a loan to a garment factory. 

An influential client of the bank played a strong role in arranging this loan for that garment factory. 

The client later lodged a complaint against Faraz Ali to the Finance Ministry and later, in view of this, the government decided to remove him from the post of director last week on December 1.

An official of the central bank, preferring to remain anonymous said: “Such incidents are not new in the state-owned Agrani Bank. Earlier, similar incidents were seen in the issue of Bangladesh Bank observer Lila Rashid and the chairman of the board of directors of Agrani Bank-- Zaid Bakht.”

At the end of the term as DMD at Janata Bank, Faraz Ali was appointed as the director of Agrani Bank on August 22, 2019. 

The government appointed him as a director for three years.