Farmers Bank renamed Padma Bank

Farmers Bank has been renamed as Padma Bank as the troubled lender looks to sweep the gross irregularities and loan scams under the carpet and get an image makeover.

The central bank issued a circular on Tuesday allowing the scam-hit bank to change its previous name on grounds that it would have a positive impact on client confidence.

The bank, which was established in 2013, became a hotbed for financial irregularities in less than three years of operation. More than Tk 3,500 crore was siphoned out from the bank, according to the Bangladesh Bank.

As of September of 2018, default loans stood at Tk 3,071 crore at the private commercial bank, up from Tk 723 crore in 2017.

Muhiuddin Khan Alamgir and Md Mahabubul Haque Chisty, the then board chairman and chairman of the audit committee respectively, were forced to resign.

Allegations of corruption against them became deafening and depositors, which included government agencies, started pulling out money.

This prompted the central bank and the government to step in and rescue the bank.