Photo: Collected
The Bangladesh Bank has revealed staggering figures concerning Beximco Group's financial obligations, with total outstanding loans and liabilities amounting to over Tk50,098 crore as of 30 November 2024. Alarmingly, more than 50% of this Tk25,524 crore has already been classified as defaulted, while the remaining amount teeters on the brink of default, said the report submitted before the High Court on Sunday.
The central bank's report, drawing from Credit Information Bureau (CIB) data submitted by all banks and non-bank financial institutions, starkly warned, "Unless the repayment of instalments is made, the majority of the classified amount shall be defaulted in the near future."
The report further uncovers an intricate web of financial dealings involving 16 scheduled banks and seven non-bank financial institutions (NBFIs) that extended various credit facilities loans, advances, letters of credit, and guarantees to Beximco Group's companies.
As of 30 September 2024, Janata Bank led the pack, lending to 29 companies under the conglomerate. IFIC Bank where Salman F Rahman, vice chairman of Beximco Group was the chairman, also financed 29 companies, followed by National Bank, which supported nine, Sonali Bank and Agrani Bank each backing four, AB Bank assisting six, and Exim Bank financing five companies. Other banks were found to have lent to at least one or more Beximco Group entities, found the BB report.
However, what has raised eyebrows is a troubling trend: the deliberate concealment of actual beneficial ownership. The report suggests this practice could facilitate money laundering and tax evasion, both of which run counter to existing laws. Such actions might have also allowed breaches of the single borrower exposure limit, a critical safeguard prescribed under Section 26 Kha of the Bank Companies Act, 1991, according to the report.
The findings point out a systemic issue: a conglomerate accumulating vast sums of credit, while potential regulatory breaches and the risk of default cast a shadow over the financial sector. The BB revelations, while significant, also raise questions about the role of the lending institutions in monitoring and controlling such high-risk exposures.
Messenger/JRTarek
