The Bangladesh Securities and Exchange Commission on Thursday declined NCC Bank鈥檚 proposal to issue a Non-Convertible Subordinated Bond-2 worth Tk 500 crore, as some directors of the bank were found to be loan defaulters.
The decision followed a notice issued on August 10, 2022, according to a disclosure in the Dhaka Stock Exchange website. It said that the commission was not in a position to approve the application of the bank for issuance of 鈥楴CC Bank Non-Convertible Subordinated Bond-2鈥� valued at Tk 500 crore.
BSEC executive director and spokesperson Rezaul Karim said that the request of NCC Bank to release the bond was declined as Credit Information Bureau of the Bangladesh Bank in its report stated that some directors of NCC Bank were loan defaulters.
Md Abul Bashar, chairman of the bank, his father and NCC bank director Md Abdul Awal, vice-chairmen Sohela Hossain and ASM Mainuddin Monem are the four management officials named as loan defaulters in the CIB report.
The said individuals are still holding key management positions in the bank, despite the Bank Companies Act stating that a defaulter cannot be a director of a bank.
