Bangladesh Bank (BB) has waived the penalty of Tk10 lakh earlier imposed on Farmers Bank for loan irregularities of over Tk38 crore.

The decision came at a board meeting held at the Bangladesh Bank headquarters in the city yesterday. The meeting was presided over by the central bank governor Atiur Rahman.

“We have waived the penalty as High Court asked the central bank to consider their application,” said SK Sur Chowdhury, deputy governor of Bangladesh Bank.

Moreover, the bank has fulfilled the instructions of Bangladesh Bank, he said.

The bank has recently sent a letter of apology to the central bank, stating that it has in line with the BB’s instruction corrected the loan amount of over Tk38crore disbursed to six institutions. 

Earlier, the bank marked the amount as investment, violating rules. As the bank complied with the instruction of Bangladesh Bank, the bank should be freed from the penalty, reads the letter.

The BB has decided to place the Farmers Bank’s appeal before its board meeting.

Earlier on January 11, the bank filed a writ with the High Court against the penalty imposed by the central bank, which drew a huge criticism from every corner.