NRB Bank faces Tk 50 lakh fine for share manipulation

The Bangladesh Bank has fined NRB Bank Tk 49.50 lakh as the banking regulator found the company's involvement in share manipulation of an insurance company.

The central bank on Thursday sent a letter to the Managing Director of the bank in this regard, said a high official of the central bank. 

The central bank found the involvement of the bank in share manipulation of Pioneer Insurance Company.

BB fined the bank under the power of section 26 (Ka) of the Banking Companies Act-1991 as the sub section (1) of the section 26 of the act has breached by the bank.

Contacted, NRB Bank's Managing Director and CEO Mamoon Mahmood Shah told The Business Post, "The regulator imposed the fine due to our excessive investment in a single company- Pioneer Insurance."

“We already withdrew the official who was directly involved in the manipulation,” he said.

NRB Bank is a fourth generation bank in the country, which commenced banking operations on 04 August, 2013. The Bank has 47 branches, 46 ATM booths outlets and 320 agent outlets across the country.