Home ›› 30 Jan 2023 ›› Front
Md Mehmood Husain has agreed to return to National Bank Ltd (NBL) as its managing director and and chief executive officer (CEO), only days after resigning from the private bank citing personal reasons.
Bangladesh Bank governor Abdur Rouf Talukder called Husain on Sunday and asked him to return the bank, a senior official of the central bank said in condition of anonymity. “Mehmood Husain responded positively and agreed to return the bank.”
The Business Post tried to reach Mehmood Husain over phone but he did not respond.
The latest development comes amid growing criticism towards NBL regarding Mehmood’s resignation on 18 January after serving at the bank for over two years. He cited personal reasons in his resignation letter for leaving the bank. But several media, citing bank sources, reported that the banker was forced to resign.
Meanwhile, Bangladesh Bank Executive Director Md Mezbaul Haque said, “We know that he is still retains the posts of managing director and CEO at the bank. Mehmood Husain submitted a resignation letter to the board, which was not accepted.”
On January 25, NBL said in a press release that Husain was called in the Sikdar House and asked for an explanation about the bank’s recovery and overall performance.
The press statement added that the allegation of forcing him to resign is baseless.
Mehmood joined NBL as managing director in December 2021, after Shah Syed Abdul Bari resigned from the post showing health conditions as a cause in November of 2021, which also drew criticism.
The Bangladesh Bank on January 23, restricted NBL from issuing loans amounting to more than Tk10 crore to protect depositors, and ensure proper implementation of an agreement signed between the two parties.
On August 21 last year, the Bangladesh Bank had signed a Memorandum of Understanding with NBL in a bid to improve its financial health, as it had continued to deteriorate due to significant loan irregularities.
After the then National Bank Chairman Zainul Haque Sikder’s death, his widowed wife Monowara Sikder became the bank’s chairman. Their daughter Parveen Haque Sikder and two sons Rick Haque Sikder and Ron Haque Sikder are also on the board of directors.
The bank is now facing several crises due to credit card irregularities and high amount of non-performing loans.
At the end of last September, the amount of defaulted loans of NBL stood at Tk 11,335 crore, which is 27.46 per cent of the total disbursed loans of the bank.
