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National Bank Limited, the first-generation private bank has emerged from the lending restrictions previously imposed by Bangladesh Bank. On August 19, Bangladesh Bank imposed restrictions on loan disbursements for six banks owned by the controversial S. Alam Group. Under the new directive, these banks are required to obtain Bangladesh Bank's approval before granting loans exceeding 50 million BDT. Additionally, the renewal of loans to entities with overdue or excessive credit limits must be backed by cash repayment.
The banks affected by these restrictions include Islami Bank, Social Islami Bank, First Security Islami Bank, Union Bank, Global Islami Bank and Bangladesh Commerce Bank. Although the National Bank had been subject to similar restrictions in the past, its name is notably absent from the current list, allowing it to resume loan disbursements without any impediment.
Moreover, Bangladesh Bank, the regulatory authority for the banking and financial sector, has advised dissolving the boards of directors for 12 banks, including seven controlled by the S. Alam Group. The Banking Regulation & Policy Department (BRPD) of Bangladesh Bank has already begun the process of restructuring these Boards, aiming to appoint skilled and professional individuals, including at the National Bank.
Commenting on this significant development, Md. Touhidul Alam Khan, FCMA, Managing Director & CEO of National Bank, stated, “With our extensive network of 286 branches and sub-branches nationwide, National Bank is in well-position for a swift recovery.” He further emphasized that in the first six months of this year, National Bank successfully recovered nearly 6 billion BDT from various defaulted borrowers. “Our current priority is to increase investments in agriculture, consumer finance, and the SME sector, with a specific focus on supporting small and medium enterprises,” he added.
This new flexibility positions National Bank to seize growth opportunities and reinforces its commitment to contribute positively to the banking sector and economy as a whole.
Messenger/Sajib
