The private sector National Bank has not had a full-fledged Managing Director (MD) for a long time. Despite repeated instructions from Bangladesh Bank, the bank is not taking action. This time, Bangladesh Bank has given final instructions for the appointment of MD. It has also been warned that an administrator will be appointed if a permanent MD is not appointed by April 28.
Bangladesh Bank recently sent a letter to National Bank Chairman Manwara Sikder in this regard. The letter said that if the MD is not appointed by April 28, the central bank will take action as per Section 15-A of the Bank Companies Act.
In this context, Bangladesh Bank Executive Director and Spokesperson Sirajul Islam said yesterday that according to the law they have to appoint a permanent MD. This position cannot be kept vacant for a long time. Bangladesh Bank has such an instruction. It is also stated in the Bank Companies Act. They have been instructed as per law.
Section 15-A of the Bank Companies Act 2 sub-section states that the post of MD of a bank cannot be left vacant for more than three months at a time. It is stated in sub-section 3, if the post of MD is not filled within this period, Bangladesh Bank can appoint an administrator, who will perform the duties of MD of the bank. According to the law, if the MD is not appointed by April 28, Bangladesh Bank can appoint an administrator in the bank.
Meanwhile, irregularities in disbursement of loans, non-existence of managing director (MD), conflicts of power have started in the board of directors. All in all, the National Bank is in a state of instability. Earlier, the bank's Additional MD ASM Bulbul was in charge of MD. But Bangladesh Bank asked to remove him after the expiry of the term. Later, the bank's chairman Manwara Sikder extended his tenure, effective April 1. But as the matter is against the rules, the central bank has once again ordered (April 6) to prevent him from his current duties. After the instructions of the central bank, the board of the bank removed ASM Bulbul from the responsibility and assigned the deputy managing director Shah Syed Abdul Bari as acting MD. April 28 will complete three months of the bank's permanent MD vacancy.
