The Bangladesh Bank has set the lending rates for the six banks, including Islami Bank Bangladesh PLC, owned by Chattogram-based controversial conglomerate S Alam Group.
These banks must obtain permission from the central bank before disbursing loans over Tk 5 crore, and no institution is allowed to overdue their loans without cash collection.
According to a letter, issued by the central bank and signed by Director (DOS) Mizanur Rahman Akon on Monday, these banks are – Islami Bank Bangladesh PLC, Social Islami Bank PLC, First Security Islami Bank PLC, Union Bank PLC, Global Islami Bank PLC and Bangladesh Commerce Bank PLC. Earlier this limit was also set for the National Bank PLC.
This is a major decision after eminent economist Ahsan H Mansur joined the Bangladesh Bank as its governor on Wednesday.
In the letter, the central bank stated that the measure has been taken to prevent the overall deterioration of the banks’ financial condition and to protect the interests of depositors.
It added that the directive has been issued under the powers vested by the Bank Company Act, 1991 to improve the financial condition of the banks, and protect the interests of depositors.
The Bangladesh Bank imposed this limit at a time when six banks were almost emptied by the S Alam Group. After the fall of the Awami League government, the then central bank governor Abdur Rouf Talukder went into hiding, read the letter.
During his time, the Bangladesh Bank lent over Tk 35,000 crore to six banks, which were looted by the group, the letter added.
