The government has decided to shut down the Gulshan branch of state-owned BASIC Bank in capital Dhaka.

Finance Minister AMA Muhith broke the news to reporters at Sonali Bank UK Ltd’s dividend handover ceremony at his office on Thursday.
“It’s a good day. Because a state-owned institution is paying the dividend money. But the incident of Sonali Bank and Hall-Mark has tainted our image,” he said.
“No-one knows as yet about another incident of fraud which has taken place at state-owned BASIC Bank. That’s why we are shutting down the bank’s Gulshan branch.”
FIle Photo FIle Photo A Bangladesh Bank investigation has found irregularities in nearly Tk 17 billion loan disbursement in that branch.

Most of that money has become default loans. The central bank investigators believe the chances of recovering that money are slim.BASIC Bank’s Board of Directors and management are believed to be involved in these loan frauds.
The central bank had signed an understanding with it last year, but the irregularities kept persisting.
A special committee of the Bangladesh Bank has questioned the bank’s Managing Director Qazi Fakhrul Islam in connection with the fraud.
The Anti-Corruption Commission (ACC), too, is probing the incidents.
The bank’s deputy managing director and five other were sacked on Apr 15 for their alleged links with loan frauds and other irregularities.
Among them were Gulshan branch Manager and the bank’s Deputy General Manager Shifar Ahmed and loan section Chief Deputy Manager Jahid Hasan.
The other sacked officers were also with the bank’s loan section.

The central bank investigation report says certain gross irregularities had been detected at the bank’s Gulshan branch. For instance, a loan of Tk 2.4 billion had been given to a fictitious organisation called ‘Mama Bhagne’.
The investigators have termed this a ‘vanishing loan’.
One ‘Jewel’ had been given a total loan of Tk 3.380 billion for his five fictitious companies.
A recent survey of the Bangladesh Bank also showed that the Gulshan branch of BASIC bank had shown undue favour to a former director of Premier Bank.
His loan limit had been raised despite a low transaction level. Besides, his repayments had been repeatedly rescheduled, although he had not paid back any amount.
The central bank has now sought an explanation from state-owned bank’s Gulshan branch.
The report says several irregularities have come to light in the approval, disbursement and monitoring of loans, and that the branch authorities had ignored loan defaults.
Meanwhile, the Sonali Bank UK Limited has given the government nearly Tk 130 million in dividend for 2013.
The bank’s board Chairman M Aslam Alam and Chief Executive Officer Ataur Rahman Prodhan handed the cheque to the finance minister on Thursday.
Sonali Bank Ltd Chairman Habibur Rahman was also present there.
In 2012, the bank had given the government a profit share of 400,000 pounds.
The government has a share in the Sonali Bank UK Ltd, but it functions as an autonomous entity under licence from the Bank of England.
With six branches and 66 employees, the bank is providing services to the Bangladesh expatriates in the UK.
It began operations there in 2001 but initially arranging remittances was its main function.
It had incurred losses until 2007, but began making profits once new banking products were introduced.

The central bank investigation report says certain gross irregularities had been detected at the bank’s Gulshan branch. For instance, a loan of Tk 2.4 billion had been given to a fictitious organisation called ‘Mama Bhagne’.
The investigators have termed this a ‘vanishing loan’.
One ‘Jewel’ had been given a total loan of Tk 3.380 billion for his five fictitious companies.
A recent survey of the Bangladesh Bank also showed that the Gulshan branch of BASIC bank had shown undue favour to a former director of Premier Bank.
His loan limit had been raised despite a low transaction level. Besides, his repayments had been repeatedly rescheduled, although he had not paid back any amount.
The central bank has now sought an explanation from state-owned bank’s Gulshan branch.
The report says several irregularities have come to light in the approval, disbursement and monitoring of loans, and that the branch authorities had ignored loan defaults.
Meanwhile, the Sonali Bank UK Limited has given the government nearly Tk 130 million in dividend for 2013.
The bank’s board Chairman M Aslam Alam and Chief Executive Officer Ataur Rahman Prodhan handed the cheque to the finance minister on Thursday.
Sonali Bank Ltd Chairman Habibur Rahman was also present there.
In 2012, the bank had given the government a profit share of 400,000 pounds.
The government has a share in the Sonali Bank UK Ltd, but it functions as an autonomous entity under licence from the Bank of England.
With six branches and 66 employees, the bank is providing services to the Bangladesh expatriates in the UK.
It began operations there in 2001 but initially arranging remittances was its main function.
It had incurred losses until 2007, but began making profits once new banking products were introduced.