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Social Islami Bank assigned a huge loan to Nabil Group in violation of the law
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.
The Bangladesh Meteorological Department (BMD) has issued a cautionary notice indicating that the current heatwave is anticipated to endure for 72 consecutive hours commencing Thursday morning.
The BMD attributes the prolonged discomfort to heightened moisture incursion, amplifying the oppressive conditions.
This advisory comes subsequent to prior warnings released on April 19th and April 22nd, underscoring the BMD’s ongoing vigilance and management of the adverse weather dynamics impacting the area.
Prime Minister Sheikh Hasina today (25 April) called for speaking out against all forms of aggression and atrocities, and say ‘no’ to wars.
“We must speak out against all forms of aggression and atrocities, and say ‘no’ to wars,” she said adding that Bangladesh supports the UN Secretary General’s ‘New Agenda for Peace.
The prime minister was addressing the 80th Session of the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP) held at the ESCAP Hall (2nd floor), United Nations Conference Center (UNCC) here.
She arrived in Bangkok on Wednesday on a six-day official visit to Thailand.
The PM said the pre-condition for sustainable development is lasting peace and security.
“We must settle regional disputes and tension through dialogue. Our mutual respect for national sovereignty and territorial integrity must remain paramount,” she said.
Hasina called upon the Asia-Pacific region, especially ASEAN, to redouble their efforts to end Rohingya crisis as all efforts at regional connectivity, integration, and prosperity will continue to be marked by a missing puzzle without it.
“The origin of their crisis has been in Myanmar, and its solution also lies in Myanmar,” she declared.
“As long as that solution remains out of reach, all our efforts at regional connectivity, integration, and prosperity will continue to be marked by a missing puzzle. Let us redouble our efforts to put that puzzle back in place,” she said.
She said that in August 2017, when thousands of Rohingya men, women, and children from Myanmar fled to Bangladesh, Bangladesh offered them temporary shelter.
“With an ever growing population, this has now become one of the largest humanitarian situations in the world,” she said.
Sheikh Hasina said that In the backdrop of ongoing armed conflicts in Myanmar, the Rohingya repatriation process is also getting delayed.
“This is creating serious security risks within and beyond our territories,” she said.
She called upon the Asia-Pacific region, especially ASEAN, to play a proactive role in resolving the volatile situation in Myanmar.
“We must ensure that the Rohingya can go back home in safety and dignity at the earliest possible,” she said.
The prime minister said that the Asia-Pacific region must stand united against its common enemies of poverty and hunger.
She said Bangladesh has reduced poverty from 41.51 percent to 18.7 percent between 2006 and 2022.
It also reduced extreme poverty from 25.1 to 5.6 percent during the same period.
“We remain confident about eradicating extreme poverty by 2030,” she said.
She mentioned that Bangladesh has made notable progress on food security, with focused interventions on maternal and child nutrition.
“Our current priority is to address inequalities through income distribution, asset ownership, and social protection,” she said.
The prime minister said that Asia-Pacific region must put up a united front in tackling the climate crisis, biodiversity loss, and transboundary pollution.
“We need to push for ambitious climate financing goals beyond 2025 at COP-29. We need to cooperate on cross-border water management and air quality improvement. We must all prepare for growing extreme weather events,” she said.
In this connection, she suggested looking into Bangladesh’s experience in disaster risk reduction.
“We appreciate UN-ESCAP’s support in improving our early warning capabilities,” she added.
Briefly describing various development programmes and achievements of her govebrment, the prime minister said that much of the development gains are affected by climate impacts.
“As a low-lying delta, Bangladesh has no option but to invest heavily in climate resilience,” she said.
She mentioned that Bangladesh is already recognised as a global leader in climate adaptation.
“We are happy to share our traditional and innovative solutions with other vulnerable countries,” she said.
She said that Bangladesh has urged developed and emerging economies in the region to raise their time-bound emission reduction targets.
“For economies in transition, it is important to have a just energy transition.”
In Bangladesh, she said, “we are working on long-term energy security with a sound mix of clean and renewable energy.”
“We shall continue to do our part in pursuing a circular and low-carbon economic growth pathway.”
She underscored the need for increased and easy access to financing and technology from both the public and private sectors.
“I invite UN-ESCAP to help build the capacity of climate-vulnerable countries to mobilise adequate international climate financing.”
PM Hasina said that Bangladesh now provides critical links to the Trans-Asian Highway and Railway networks.
“Our physical and digital infrastructures are being developed to foster regional trade and connectivity.”
She said Bangladesh offers access to the Bay of Bengal for land-locked territories in its neighbourhood.
“We stand ready to work together with all regional partners through mutual understanding and cooperation,” said the prime minister.
A severe heatwave blankets several northern and southern districts, while mild to moderate heat prevails in three divisions and other districts, according to the latest meteorological forecast.
“The severe heatwave affects Rajshahi, Pabna, Khulna, Bagerhat, Jashore, and Patuakhali districts,” the report stated.
Mild to moderate heatwave conditions persist in Dhaka, Rangpur, and Mymensingh divisions, as well as in parts of Rajshahi, Khulna, and Barishal divisions, along with Moulvibazar, Rangamati, Chandpur, and Bandarban districts. The heatwave may extend further, the report added.
Expect rain or thundershowers accompanied by gusty winds in Sylhet division, with isolated hailstorms, as per the weather bulletin valid for the next 24 hours from 9 am today.
Elsewhere across the country, the weather is forecasted to remain mainly dry with occasional partly cloudy skies.
A trough of low pressure lies over West Bengal and the adjoining area.
On Tuesday, the highest temperature recorded was 40.5 degrees Celsius at Ishurdi, while the lowest was 20.7 degrees Celsius at Tetulia.
Daytime temperatures may rise slightly, while nighttime temperatures may drop slightly across the country.
Increased moisture incursion may persist, causing discomfort.
In the capital, the sun sets at 6:24 PM today and rises at 5:29 AM tomorrow.
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