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Mustafa Kamal: Bribery and corruption must end from the banking sector

  • Published at 04:11 pm April 3rd, 2019
Planning Minister AHM Mustafa Kamal
File photo of Finance Minister AHM Mustafa Kamal Mahmud Hossain Opu/Dhaka Tribune

He said no banks would be closed in the country for lack of money but for mismanagement

Finance Minister AHM Mustafa Kamal on Tuesday said the bribery and corruption must end from the banking sector.

He said no banks would be closed in the country for lack of money but for mismanagement. 

He was speaking while addressing the first annual business conference of recently renamed Padma bank yesterday. 

Wishing success for the bank, the finance minister said that its management was reformed and a skilled team took over the responsibility. 

Saying that the prime minister took zero tolerance policy against corruption, he said: “We have to work with honesty, sincerity and responsibility for the next five years.”

National Board of Revenue chairman Mohammad Mosharraf Hossain Bhuiyan observed that if the banks performed well, the NBR would be benefitted as a huge amount of revenue came from the banking sector. 

The government, he stressed, must take strict measures against the loan defaulters. 

Padma Bank chairman Chowdhury Nafeez Sarafat claimed that the bank made a successful turnaround despite all difficulties. 

“We have brought down non-performing loan, increased recovery of defaulted loans and mobilized new deposits. We are striving hard. There is no lacking in our efforts, efficiency and sincerity,” he added. 

The bank’s Managing Director Ehsan Khasru paid tribute to the bank’s new owners and management, saying their vision helped the bank make a successful comeback within a short time. 

“We have brought about massive changes in the bank’s operations. We have launched an array of new products. We have also unveiled a concrete action plan to make the bank one of the best in the country. We’re now implementing the plan,” Khasru also said. 

Bangladesh Bank governor Fazle Kabir has asked Padma Bank not to go for aggressive lending keeping in mind the bad experience of the erstwhile Farmers Bank.

The fourth generation bank’s annual business conference was held at the Westin in the capital. Finance Minister AHM Mustfa Kamal was chief guest. 

The governor instructed the bank management to emphasize recovery of defaulted loans and avoiding unnecessary expenditure. 

He also urged that no cheque from customers was dishonoured and people’s trust was not destroyed. 

“Corporate governance has to be developed in banking sector and it must be made a part of culture in the sector,” he stressed. 

Agrani Bank chairman Dr Zaid Bakht, Agrani Bank Managing Director and CEO Mohammad Shams ul Islam, Janata Bank Managing Director and CEO Mohammad Abdus Salam Azad, Rupali Bank MD and CEO Mohammad Ataur Rahman Pradhan, Investment Corporation of Bangladesh (ICB) Chairman Dr Mojib Uddin Ahmed, Rapid Action Battalion Director General Benazir Ahmed and Insurance Development and Regulatory Authority Chairman Mohammad Shafiqur Rahman Patwary were also present in the conference. 

Scam-hit Farmers Bank has been renamed as Padma Bank to restore its image.

The central bank issued a circular in January this year allowing the bank to change its previous name on grounds that it would have a positive impact on clients’ confidence. The bank was established in 2013. 

Four state-owned commercial banks Sonali, Janata, Agrani and Rupali and state owned non-banking financial organization Investment Corporation of Bangladesh (ICB) have share in Padma Bank.