New bank violates rules

NRB Bank appoints a senior official aged beyond limit and approves a purchase proposal of a luxury jeep worth Tk1.56 crore

NRB Bank violated age limit in appointing a senior executive vice president and expenditure ceiling in purchasing a motor vehicle, said Bangladesh Bank.

The central bank served a show cause notice to the new bank on the anomalies.

According to a central bank report, the NRB Bank’s board of directors approved appointment of a 52-year-old in the post of senior EVP violating the age limit set in the bank’s recruitment policy.

Senior EVP Mahbubuzzaman, 52, was given the charge of leading credit risk management department.

The board also approved a proposal of purchasing a jeep worth Tk1.56 crore.

But as per Bangladesh Bank directives, the banks are not allowed to purchase a jeep worth more than Tk50 lakh and a motor car worth more than Tk35 lakh and.

The NRB Bank’s proposed jeep was to be used by the bank’s managing director. The sixth board meeting gave approval to the proposal.

The price of 2700cc jeep is Tk1.15 crore, but the bank will pay the price in instalments over a 5-year period, which accumulates the cost to Tk1.56 crore, said sources.

After reviewing the bank’s minutes of board meetings, Bangladesh Bank identified the non-compliances.

NRB Bank managing director and chief executive officer Muklesur Rahman also acknowledged that the appointment of Mahbubuzzaman broke the bank’s age limit policy in recruitment.

He however saw no problem in it as the appointment was approved by the bank’s board of directors.

“It is true that the recruitment of a senior EVP was not in line with the bank’s age policy. But it is not a problem as the appointment has board approval,” said Muklesur Rahman.

About the luxury jeep, MD said the bank did not purchase it.

“We sent a reply to the Bangladesh Bank’s show cause notice one month ago.’’

A senior executive of Bangladesh Bank said the new banks seem to a tendency of resorting to violations of regulations and policies in recruitments.

NRB Bank meant for mobilising investments from non-resident Bangladeshis received approval from the regulator Bangladesh Bank in April last year.

The bank began its operation on May 28 this year with a paid-up capital of Tk400 crore.

Source: Dhaka Tribune


  1. It is fraudulent bank created by Awami League to siphon off money by her son. The Directors are mostly lickers of the present administration. This bank should be closed.


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