AB Bank served show-cause notice for failing to recover bad loans of Tk 1,257

A Chattogram court served a show cause notice to AB Bank's chairperson and managing director for failing to take steps to recover bad loans taken by Maheen Group worth Tk 1,257.

Judge Mujahidur Rahman of Chattogram's Money Loan Court issued the order on Sunday.

"The owners of Maheen Group have fled to Canada. It must be investigated if they have committed capital flight," said the order issued by the judge.

"The bank has so far thrice failed to auction the properties attached to the loans," said the order.

AB Bank sought more time to auction the properties.

This massive amount of loans violates the single borrower exposure limit that all banks must follow, it said.

The order also directed the bank to investigate if capital flight has occurred and send a report to the Bangladesh Financial Invesigation Unit.

The bank had filed a case against Maheen Group with the Money Loan Court on May 26, 2024. The group has bad loans worth Tk 1,500 crores from different banks, said the order.

Maheen Group's primary concern is shipbreaking and its owner Ashikur Rahman Lashkar has failed to appear in any court proceedings.

The bank has been directed to respond to the show-cause notice within September 17, 2024.