Bangladesh Bank has asked two state-owned banks and one private commercial bank not to provide any further loan to Rahman Group as a number of sister concerns of the company have become loan defaulters with huge amount owed to different commercial banks.

The banks are: Sonail Bank, Agrani Bank and IFIC Bank.

Seven wings of the Rahman Group owe a total of Tk 3.15 billion to the three banks.

The central bank in its directive also asked the banks to take legal actions against the company, owned by one Fazlur Rahman, for rescheduling their default loans through illegal procedures.

The banking division of the finance ministry has also given its consent to the banks to take legal actions against the company for not paying the installments of the loans, a senior official of the banking division said.

The concerned authorities of the banks will have to take departmental action against their corrupt officials who helped the company to reschedule default loans through illegal procedures.

Earlier in March this year, some officials of Sonail Bank, Narayanganj branch, allegedly revised the installments of Tk 2.53 billion loan given to seven companies of Fazlur Rahman without prior permission of senior branch official, the BB report said.

Sonail Bank’s total outstanding loan with its Narayanganj branch stands at Tk 24.78 crore.

The seven companies owned by Fazlur Rahman are M/SRahman Spinning Mills (Pvt) Ltd, M/S Rahman Hosiery Dyeing and Finishing Mills, M/S Olympia Knitting industries(Pvt) Ltd, M/S Jasy Hosiery Garments (Pvt), M/S Rahman Hosiery Garments (Pvt) Ltd ( Rahman group combined ), M/S Rahman Hosiery Garments (Pvt) Ltd and M/S Fazlur Rahman Industries (Pvt) Ltd.

In Agrani Bank, two Rahman Group companies, with a total loan of Tk 34.70 crore, rescheduled repayment of loan illegally without prior permission of concerned authorities, according to the central bank report .

The two companies are M/S Fazlur Rahman and Co (Pvt) Ltd, and M/S Al-Afrafat Trading Company (Pvt) Ltd.

According to the BB report, in 2011, there was no trace of M/S Al-Afrafat Trading Company Company while M/S Fazlur Rahman and Co (Pvt) Ltd became defaulter with Agrani Bank.

Private commercial bank, IFIC, detected that the repayment of default loans of three Fazlur Rahman companies are irregular and rescheduled illegally. These Fazlur Rahman companies are: M/S Rahman and Company (Pvt), M/S Rahman Spinning Mills (Pvt) Ltd, and M/S Rahman Hosiery Dyeing and Finishing Mills (Pvt) Ltd.

Total loans of IFIC Bank given to three Fazlur Rahman companies stands at Tk 26.70 crore, according to the report.

While contacted, the Chairman and Managing director of Rahman Group, Fazlur Rahman, said if the loans of companies are not rescheduled in proper time in the future, all companies of Rahman Group may close down.

A total of 20000 officials and workers may loose their jobs, he added.

The Daily Sun/ Bangladesh/ 14th May 2012