South Bangla Agriculture and Commerce Bank (SBAC) has suspended 11 officials, including two deputy managing directors (DMDs), due to alleged irregularities in disbursing loans.
The two DMDs are Md Kamal Uddin and Shafiuddin Ahmed, said Mosleh Uddin Ahmed, managing director of SBAC.
Other officials include the heads of credit administration and international divisions, as well as SBAC branch managers.
Mosleh Uddin said the bank made the decision on October 4 in accordance with Bangladesh Bank directives.
According to him, the central bank recently sent three separate letters to SBAC, requesting that it take disciplinary action against them after a Bangladesh Bank investigation found allegations against them.
Another lender official said that the officials allegedly assisted in securing a loan for Lockpur Group concern, owned by SBAC's immediate-past Chairman, SM Amzad Hossain -- who is also the chairman and CEO of that group.
Amzad Hossain resigned on September 7 -- citing illness -- amid allegations of irregularities and corruption, according to a probe by the anti-graft watchdog.
Hossain is being investigated for allegedly misusing power to borrow money from the bank for a non-existent company, forgery, and duty evasion.
The central bank's inspection team recently discovered that SBAC had given Eastern Polymer Ltd -- owned by Lockpur Group -- Tk 317 crore in loans to settle import payments.
According to Bangladesh Bank rules, banks must obtain prior approval from it before declaring any loans to their own directors.
The lender did not obtain permission to disburse the loans to Hossain, which is a violation of banking norms, according to Bangladesh Bank's report.
The suspended officials did not obtain prior approval from the bank's higher-ups to settle import payments of Tk 141 crore out of Tk 317 crore, according to SBAC officals.
The suspended officials could not be reached.
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