BB seeks explanation from Union Bank

The Bangladesh Bank has sought an explanation from shariah-based Union Bank regarding the mismatch of its vault money and asked it to find out officials involved in the irregularities. 

The banking regulator sent a letter to Union Bank Managing Director ABM Mokammel Hoque Chowdhury on Wednesday. 

“We asked them to explain the irregularity, and if the answer is not satisfactory, we’ll take legal actions against the bank,” said Bangladesh Bank Executive Director and spokesperson Md Serajul Islam. 

Meanwhile, the Union Bank has formed an inquiry committee to find out the officials involved in the irregularities and withdrew three of its employees in charge of the vault, its Deputy Managing Director Hasan Iqbal told The Business Post.

When asked about the discrepancy in the amount of money in the vault, Iqbal said that money was given to a VIP customer after banking hours in the evening but the account could not be adjusted as the cheque clearing system of the bank and central bank was shut down at that time.

“Although such transactions violate banking norms, they depend on the bank-customer relationship,” he explained.

Bangladesh Bank found a mismatch of Tk 19 crore in the Gulshan Branch of Union Bank. It noticed the irregularity after a recent inspection at the branch, Serajul said.

According to BB, the vault document mentioned a deposit of Tk 31 crore in the Gulshan branch, but the central bank inspection team found only Tk 12 crore.

There is a deficit of Tk 19 crore in the vault and the branch officials could not give any clear answer, an investigating official said, declining to be named. 

Union Bank Managing Director Chowdhury did not respond to requests for comment.