Bangladesh Bank has removed ONE Bank Chairman Sayeed Hossain Chowdhury over bad loans tied to one of his companies.
The episode of delinquency stems from his loans from Standard Bank.
The loans borrowed from Standard Bank on behalf of HRC Shipping Lines, a unit of HRC Group, have amounted to about Tk 1.21 billion, including interests, as of Jan 6.
Chowdhury is the chairman and chief executive officer of HRC Group, a sprawling conglomerate, reports bdnews24.com.
He was removed after the loans he borrowed for his company soured, Sirajul Islam, executive director of the central bank, said citing the Banking Companies Act of 1991.
“The letter instructing the removal of Sayeed Hossain Chowdhury was handed to the managing director and the board of directors of the bank on Sunday,” the Bangladesh Bank spokesman said on Monday. Chowdhury will not be able to sit on ONE Bank’s board for three years.
“Loan defaults led to the cancellation of directorship at the bank, so being the chairman is out of the question,” Islam added.
Standard Bank’s Principal Branch has decided to sell off his mortgaged lands in Chattogram over the bad loans.
HRC Group boasts diverse interests in shipping, chartering, tea estates and rubber plantations, blending and packaging of tea, print media, lighting industry, distribution, travel trade, insurance and housing finance.