The infamous Nabil Group took a loan of Tk 6,370 crore from 3  private sector banks. Out of this only Social Islami Bank has given a loan of 1 thousand 120 crores to the company. Bangladesh Bank’s preliminary report has revealed that this money has been given in violation of the law.

The report suspects that this loan is an unknown loan in the name of an organization related to the interests of the bank directors. Again, this amount of loan in the name of the same group is more than the loan limit given in favor of a single customer (Single Party Exposure Limit) under the Bank Companies Act.

However, Bangladesh Bank’s Department of Offside Supervision has recommended handing it over to the Special Inspection Department for detailed investigation. Banks have also been asked to submit some necessary documents to Bangladesh Bank.

According to the Central Bank report, on May 30 this year, Social Islami Bank’s 481st board meeting approved a loan of Tk 1,120 crore to Nabil Food and its subsidiaries, Nabil Feed Mills and Shimul Enterprises from the Gulshan branch. Out of this funded (cash) 450 crores and non-funded (LC and bank guarantee) 670 crores. Hence, the investment limit has been newly approved. But where this money will be used is not mentioned. It is important to verify the consideration given to such a large amount of loan to a new customer.

The loan was approved in the 481st board meeting of the bank but the conditions were relaxed in the 482nd and 483rd board meetings. In this case, all the directors and their spouses had guarantees in respect of personal guarantees. But later the conditions were relaxed and only the directors were guaranteed. In the case of saving deposits, it was said that the deposit should be increased. But later it was relaxed and said that adequate deposits should be kept. No explanation was given for this adequacy. The report also mentions that it is important to know under what circumstances conditions are relaxed in the case of a new loan. Also, the customer is anonymous. The board of directors of the bank should also verify whether any institution is related to the interest.

A non-funded loan of Tk 950 crore has been given in favor of Nabil Grain Crops, a new customer of the Gulshan branch. According to the policy of the bank, there should be a security of Tk 230 crore in this loan. The terms of the loan include a deposit or lien of Tk 110 crore. It is said in one place, this money will be used for the import and marketing of agricultural products. But according to the latest CIB report, the total exposure of customers in various banks and financial institutions is only 8.5 lakh taka. After reviewing the project loan, it was found that the customer was brand new. As a result, a completely new customer was given this amount of credit for trading. In this case, it is necessary to verify whether the client’s large business management skills and proper use of funds have been made.

When asked about this, the managing director of Nabil Group told that if the bank violated the law and gave the loan, it is their business. But we have been in business for a long time and we have taken loans according to all the rules.

Managing Director (MD) and Chief Executive Officer (CEO) of Social Islami Bank Zafar Alam was called and he hung up saying that he was in a meeting and would talk later.

Those concerned say that a bank can lend up to 35 pc of its paid-up capital to a single institution, both funded and non-funded. Out of this, 15pc is funded and 20pc is non-funded. And currently, the total paid-up capital of these three banks is 3 thousand 690 crores. In this case, the group can be given a loan of up to 1,300 crores. But given almost 5 times more than that.

Nabil Group’s website mentions 17 companies in the group. These are Nabil Food, Flower Mill, Feedmill, Auto Rice Mill, Dal Mill, Consumer Products, Nabil Farm, Cattle Farm and Nabil Transport. But only 6 products are mentioned in the product option on this website. These include – rice, flour, semolina, pulses and fodder. The chairman of the company is Md. Jahan Bux Mondal, director Israt Jahan, managing director Md. Aminul Islam and Deputy Director. Mamunur Rashid.