Friday, June 14, 2024


Dhaka Tribune

National Bank to inject Tk4,000C to tackle liquidity crisis, recover from bad loans

'National Bank will not merge with any other bank' says the bank's Chairman Khalilur Rahman

Update : 06 May 2024, 08:55 PM

To solve the ongoing liquidity crisis at National Bank Limited (NBL), the newly formed board of directors said they will initially provide Tk1,000 crore in the capital of National Bank through shareholders. Another Tk3,000 crore will be provided later through various deposit collection campaigns and projects.

They said the recovery of bad loans will be given top priority and no exemption will be given to anyone, especially for the recovery of bad loans, at a press conference of the newly formed board of directors on Monday.

Chairman of the bank Khalilur Rahman said: "We understand the needs of businesses and as a result, we are determined to make National Bank a business-friendly bank by making timely decisions for businesses and staying by their side. We strongly believe that through this, the National Bank will turn around and regain its lost prestige.” 

“We want our journalist friends working in the media to be with us in this progress at the National Bank,” he also affirms. 

Managing Director and CEO of National Bank Touhidul Alam Khan said that the current council is much stronger and more effective than at any other time. Besides, a highly skilled team under the leadership of the management authority is working tirelessly.

“I believe, with the combined efforts of these two, the National Bank will turn around soon,” he added. 

However, according to the financial statement, it incurred losses of Tk1,497 crore in 2023, down by around 54% from Tk3,285 crore of the previous year, 

The bank's bad loans stood at Tk12,368 crore which was 28.92% of its total disbursed loans, according to Bangladesh Bank data.

Bangladesh Bank officials during a meeting with the chairman of United Commercial Bank (UCB) on April 9 decided to merge UCB with National Bank.

The central bank officials said National Bank directors split over the merger issue.

BB dissolves NBL board again

Within five months after restructuring, Bangladesh Bank dissolved the board of directors of National Bank Ltd by issuing an order in this regard to the board and formed a new one on May 5.

NBL Chairman Syed Ferhat Anwar, a former teacher at the Institute of Business Administration of Dhaka University, whom the Bangladesh Bank appointed in December; director Parveen Haque Sikder, a director of the Sikder group; independent directors Md Serajul Islam, former executive director of Bangladesh Bank, and M Kamal Hossain, former managing director of Southeast Bank, were among those removed.

Earlier on December 21 Bangladesh Bank dissolved the board of NBL after receiving a recommendation from the Bangladesh Securities and Exchange Commission. 

New board of directors

Bangladesh Bank made National Bank's sponsor director Khalilur Rahman the board's new chairman and kept two directors of the dissolved board in the new board.

Khalilur, a longstanding entrepreneurial shareholder of National Bank, is also the chairman of the KDS Group.

Reazul Karim, former managing director of Premier Bank; businessperson Arshad Mahmud; Ahsanul Karim, senior lawyer at the Supreme Court; and Prof AKM Tafazzal Haque of Chittagong University, were nominated directors.

The central bank also appointed three independent directors Prof Md Helal Uddin Nizami, of Chittagong University; chartered accountant Ratna Dutta; and Bangladesh Bank former executive director ABM Zahurul Huda.

Now there is no one from the family of National Bank founder late Zainal Haque Sikder serving as a director this time. 

Last December, only Parveen Haque Sikder was appointed to the board from the family.

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