Scam-hit NBL to hold AGM on Dec 28

The National Bank Limited (NBL), which has long been struggling with bad loans and irregularities, will hold virtually an annual general meeting (AGM) on December 28.

The AGM is expected to approve a 5 per cent bonus dividend for the year ending in December 2020, the bank said in a news filing with the Dhaka Stock Exchange (DSE) on Thursday.

The bank had initially set September 30 for holding the AGM. But it postponed the event citing unavoidable circumstances on September 9.

The financial health of the first generation bank has been worsening since 2009 when Sikder Group took control of the lender’s board.

In the face of myriad irregularities in management and loan sanctions, the Bangladesh Bank recently geared up its monitoring on the bank.

The bank had allegedly disbursed a good amount of loans without the approval of its board. Against such a backdrop, the central bank asked the lender not to disburse any loan without its prior approval.

The NBL has been burdened with defaulting loans.

According to BB data, the NBL’s default loan stood at Tk 4,588 crore in September this year, which is 10.76 per cent of the total outstanding loan.

Moreover, a conflict erupted among the directors over the management of the bank after the death of its Chairman Zainul Haque Sikder.