BB sees ‘negligence of duty’ as Padma Bank MD flies to Canada without authorization

These “unacceptable” action is a major obstacle to creating superior governance in banking institutions, the central financial institution observed in a recognize that asked for his explanation about the matter.

Khasru did not take not acquire cell phone calls or answer to messages for his opinions for this story.

The Bangladesh Financial institution experienced supplied him until Jan 7 to arrive up with a statement. Officers at the Padma Lender reported thy do not know irrespective of whether he answered the central lender, whose officers also declined to remark.

Officers at the Padma Lender explained Khasru left for Canada on Dec 19 very last 12 months and is scheduled to return household on Jan 11.

The Bangladesh Bank in a circular on Mar 23, 2020 said the existence of main executives of the banking companies at their workplaces is really essential, but some of them keep abroad for a extensive time on formal intent or holiday break.

“Such motion slows down the bank’s operating and create alternatives of economic losses and hazards in management and operations, which is never anticipated,” it said. 

So, the circular claimed, all financial institution managing directors and CEOs will demand the central bank’s authorization just before leaving the region.

They will need to have to present particulars of their abroad excursion in a variety 15 organization times right before getting the journey alongside with a duplicate of the board’s permission for the main government to depart the region.

On obtaining the authorization, they will then need to have to submit call facts and other information of the officers who will work in their spots throughout the overseas journey.

In the notice to Khasru on Dec 22, 2020, the central bank’s Basic Supervisor Nazrul Islam stated the Padma Financial institution taking care of director desired to inform the board of directors about the Mar 23 round as per rule mainly because he initially requires the board’s acceptance to go abroad.

It is the running director’s obligation to advise the board about this sort of essential make any difference. The board would have reminded him of the matter prior to approving his holiday getaway, had it been advised about the circular on the Bangladesh Financial institution permission.

“But the board could not stipulate the condition (Bangladesh Financial institution authorization) since the obligation was not fulfilled adequately. It implies you (Khasru) neglected your responsibility which is a important impediment to setting up great governance in the financial institution. This kind of things to do are unacceptable,” the central bank mentioned.

Immediately after serving Primary Lender, Nationwide Financial institution, Leading Lender and other banking companies, Khasru took cost of The Farmers Bank’s management in January 2018 when it was sinking into major hassle. Immediately after a shake-up to the board, the lender was rechristened as the Padma Lender.  

Chowdhury Nafeez Sarafat is chairman of the lender. He is also chairman of RACE Asset Administration PLC and the board of trustees of the Canadian College of Bangladesh.