Home ›› 09 May 2022 ›› Front
The Bangladesh Bank (BB) has renewed a $48 million deposit with Sonali Bank (UK) Ltd because the state-owned bank is unable to repay the deposit despite the fact that it has reached maturity.
The central bank board approved the Sonali Bank’s proposal for the renewal of the deposit, which was funded from the Bangladesh Bank reserve, confirmed Md Serajul Islam, executive director and spokesperson of the BB.
The meeting was presided over by BB Governor Fazle Kabir, with other board of directors and senior executives in attendance.
Sonali Bank (UK) Ltd had been suffering due to the imposition of fines by the UK regulatory body, closure of multiple branches, losses and irregularities, according to another senior central bank official.
As such, Sonali Bank had taken the aforementioned deposit from the central bank reserve and gave it to its UK branch for revival, the official went on to say.
However, Sonali Bank recently informed the central bank that it was not possible to return the deposit at this present moment.
The Business Post called the state-run bank’s Managing Director Ataur Rahman Prodhan for his comment on the issue but failed to reach him.
Fine on EBL for breaching banking rules not waived
Meanwhile, on the same day, the Bangladesh Bank board rejected Eastern Bank Ltd’s request to have the penalties levied on the bank for breaking rules waived. The matter was confirmed to The Business Post by central bank officials present at the board of directors meeting.
On March 29, the BB imposed a fine of Tk5 lakh on EBL for disbursing loans to its subsidiary and associate in violation of the single borrower exposure limit.
The banking regulator issued a letter to EBL, asking it to pay the fine within 14 days, or else it would deduct the amount from the current account of the bank with the central bank.
