National Bank allowed 11 persons, including its board directors and their family members, to spend a staggering $10.65 million (about Tk 91.4 crore) through credit cards, in a serious breach of banking rules.

The amount was spent from 2017 to 2021 by nine family members of Zainul Haque Sikder, the bank’s former chairman, and two top executives of Sikder Group, according to a probe carried out by the Bangladesh Bank.

They spent the amount violating the central bank policy that allows a Bangladeshi national to spend a maximum of $12,000 per year outside of the country through credit card or cash.

The bank allowed the 11 credit cardholders to spend beyond their foreign currency quota on the instruction of Sikder, who passed away on February 10 last year. A fortnight later, his widow Monowara Sikder was elected the bank’s chairman.

The central bank probe also found the bank had opened a foreign currency account for ZH Sikder Women’s Medical College in violation of the central bank’s foreign exchange regulations.

The transactions were conducted from National Bank’s Dilkusha and West Dhanmondi branches.

The BB has taken an initiative to cancel the authorised dealership licences (AD) for the two, according to a letter sent to the bank on December 22 last year. An AD branch of a bank is permitted to run foreign exchange related businesses.

It also asked the bank to explain why its card division should not be barred as well as the credit cards of Rick Haque Sikder and Ron Haque Sikder, both directors of National Bank.

The bank has requested the central bank to give it an additional 30 days to respond to the letter, said its Managing Director Md Mehmood Husain.

There might have been some lapses in monitoring the credit card transactions of the 11 persons, he said.

The persons are now well aware of their credit limit and have already repaid the major portion of the amount.

“We will also request the central bank not to cancel the licences given the business volume of the two AD branches,” Husain added.