National Bank incurred loss of Tk 1,768 crore in January-September of this year. According to its price sensitive statement, its loss per share during the quarter was Tk 5.49.
NBL said in the statement, during the period, bank could not book interest on loans and advances due to non-recovery from defaulters. Furthermore, the bank incurred higher interest expenses on deposits and borrowings. Consequently, the period concluded with an operating loss, with significant deviations observed in profit.
Despite making loss, its share price rise 4% to reach Tk 5.20 yesterday.
Customers locked the main entrance of National Bank's Shibganj branch in Sylhet yesterday after being unable to withdraw their desired amount of money.
Over 50 frustrated account holders gathered at noon outside the branch, demanding access to their money.
The protesters alleged that they had been facing harassment for several days while trying to withdraw money from the Shibganj branch.
They claimed when they presented cheques for various amounts, they were only given Tk 5,000-Tk 10,000. Upon inquiring about the reason, they were told that the bank was facing a cash shortage.
Shahparan Police Station Officer-in-Charge (OC) Md Manir Hossain told Daily Post that upon receiving the news of the protest, they went to the scene and brought the situation under control.
"The bank gates were opened after convincing the customers. I have spoken to the managing director of the bank, who assured that funds will be sent," the OC added.
Sabbir Hanan, senior assistant vice president and manager of the bank's Shibganj branch, said, "It was not possible to provide customers with the amount of money they requested."
He explained that due to various rumours, customers were only coming to withdraw money and not depositing any."This has led to a severe cash shortage in the bank's branches."
Earlier on Monday several customers had locked another branch of National Bank in Sylhet's Golapganj, over the same issue. At that time, they blocked Sylhet- Zakiganj road and staged a protest.
National Bank burdened with defaulted loans. In 2009, the amount of defaulted loans in banks was less than Tk 400 crore, now it has increased to over Tk 12 thousand crore.
Among the five banks that the central bank decided to merge with other banks, National Bank had the highest amount of defaulted loans. 29 percent of loans disbursed by National Bank are defaulted. In the last two years their net loss is 4 thousand 782 crores.
On December 22, 2021, the central bank provided NOC through seven letters to National Bank for allowing the interest waiver facility to the loans, taken from the bank's Khatunganj branch in Chattogram and Gulshan branch in Dhaka in 2003.
The ailing National Bank waived Tk 2,283 crore as interest on the loans of eight companies of S Alam Group: S Alam Super Edible Oil got Tk 715 crore interest waiver, S Alam and Company got Tk 456 crore, S Alam Vegetable Oil got Tk 322.77 crore, NAF Trading Tk 249.96 crore, Adil Corporation Tk 185.23 crore, Pusti Vegetable Ghee Tk 158 crore; Fairy Trade international Tk 122.87 crore and S Alam Brothers Tk 73.14 crore.
As a result, S Alam Group ended up repaying the principal amount of Tk 4,928 crore and no interest, according to central bank documents.
Some companies of Sikder Group, which held controlling stakes in National Bank then, had loans in three Shariah-based banks controlled by the S Alam Group and National Bank provided the interest waiver facility to S Alam Group on the assurance that Sikder Group would be afforded the same facility in the Islamic banks,
After the Awami League-led grand coalition government came to power in 2009, the authority of National Bank passed to Sikder Group chairman Zainul Haque Sikder. The Sikdar family took sole control of the bank by adding their wives, children, relatives and party leaders to the board. Irregularities started, good entrepreneurs left the bank. Since then the bank has only deteriorated.
After the regime change, at the 505th meeting of the Board of Directors on August 22, 2024, Sponsor Directors Abdul Awal Mintoo and Moazzam Hossain were unanimously elected as Chairman and Vice Chairman of National Bank, respectively. This follows the dissolution of the previous Board of Directors by Bangladesh Bank on August 20, 2024.
We called Touhidul Alam Khan, managing director of National Bank about this matter but he did not receive the call.
ZH
