The Bangladesh Bank (BB) has halted the proposal from Southeast Bank for the disbursement of a TK670 crore loan to a securities company intended for the purchase of shares.

A letter in this regard was sent by BB Financial integrity and customer services (FICSD) additional director Mohammad Zakir Hossain to southeast bank Managing Director (MD) on Sunday (Feb 25).

On the same day Bangladesh Bank authorities concerned paid a special visit to southeast bank.

The letter said, “A special inspection is being carried out in Southeast Bank under the powers conferred by Section 44 of the Bank Companies Act-1991. In order to facilitate this ongoing inspection, you are advised not to release any money, i.e. not to purchase any stock through the securities company, as approved in the agenda number 9 of the 721st Board of Directors meeting of the bank held on February 20, until further instructions.”

Southeast Bank’s Managing Director (MD) Nuruddin Md Sadeque Hussain did not receive phone call after several times of calling.

However, several officials of the concerned department of the bank said that they had received the letter given by the head of the inspection team of the central bank. The matter has been informed to the bank's chairman, MD and all concerned.

It is learned that, on February 20, Southeast Bank during a board meeting approved Tk 50 crore loan to a securities company. However, later the loan amount was modified several times and the loan was increased to Tk 570 crore.

After finalizing the documents at the end of board meeting, the loan amount was increased by more Tk 100 crore. In total, the amount of loan sanctioned by Southeast Bank against that Securities Company stood at Tk 670 crore.

The loan is sanctioned on behalf of Southeast Bank to purchase shares of listed companies as well as unlisted companies.

In this regard, Alamgir Kabir, chairman of Southeast Bank, told the media that if Bangladesh Bank has issued such letter, it is absolutely wrong. 

“We have appointed the securities company as a panel brokerage house of Southeast Bank. The company will buy the shares on behalf of the bank. They should buy the shares that we ask them to buy. There is no question of lending here,” he added.

BDST: 1530 HRS, FEB 28, 2024
MSK