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BB fines NRBC Bank for stock market overexposure

Staff Correspondent
06 Sep 2021 00:00:00 | Update: 06 Sep 2021 08:31:59
BB fines NRBC Bank for stock market overexposure

The Bangladesh Bank has fined new generation NRBC Bank for its overexposure to the country’s capital market.

BB sent a letter to NRBC managing director in this regard on Sunday, Md Serajul Islam, executive director and spokesperson of BB, confirmed to The Business Post. He said that the BB fined the bank for crossing the limit of bank’s stock market exposure.

The Banking Companies Act 1991, which was amended in 2013, has limited a bank’s stock market exposure to up to 25 percent of its capital. The capital includes paid-up capital, share premium, statutory reserve and retained earnings.

The bank could face a fine of Tk20 lakh, which can go up to Tk25 lakh, for violating the law, said another high official of the central bank. Contacted, NRBC Bank Managing Director and CEO Golam Awlia confirmed that the bank has received the central bank letter.

However, he refused to many any further comment in this regard.

The new generation NRBC Bank got listed with the country’s stock market on March 22. It was the first listed bank with the stock market among new generation bank.

The bank was established on February 20, 2013, and began operating from April 4 the same year.