National Bank asked not to disburse loans over Tk 10 crore

The Bangladesh Bank has ordered private-run National Bank not to disburse more than Tk 10 crore in loans as the lender is going through uncertainties after the resignation of its Managing Director Md Mehmood Husain. 

The banking regulator has taken the decision to protect the interest of the depositors, said Bangladesh Bank Spokesperson Md Mezbaul Haque.

"The MD of the bank has submitted his resignation letter to the board, creating an uncertainty about the operation of the lender," he said.

"So, the central bank beefed up its monitoring on the bank. As part of the move, the bank was instructed not to disburse more than Tk 10 crore in loans."

The central bank sent a letter to the bank yesterday to this end.

The MD of the bank submitted his resignation letter to the board on January 18. Sources in the central bank and National Bank said the board of the bank asked the MD to resign.

A good number of managing directors of National Bank had earlier faced the same consequences amid pressure from the board members, they said.

"The central bank will investigate the issue whether the latest resignation process of the MD was completed following the central bank rules," Haque said.