The Anti-Corruption Commission (ACC) has launched an investigation into allegations of massive loan irregularities and corruption involving the controversial AnonTex Group, allegedly carried out in connivance with employees of Janata Bank.
To address the scandal, the ACC has formed a two-member investigation team tasked with uncovering the extent of the fraudulent practices.
Initial findings reveal that Janata Bank disbursed Tk 3,527.9 crore in loans to 22 companies under the AnonTex Group between 2010 and 2015.
By June 2024, with accumulated interest, this figure had surged to over Tk 7,737 crore, and the entire amount had defaulted.
This staggering default not only underscores a complete breakdown of corporate governance but also highlights blatant violations of the Bank Company Act 1991, which caps single borrower exposure.
聽The loans to AnonTex exceeded 25 per cent of Janata Bank鈥檚 capital base鈥攁 clear breach of regulatory limits.
In 2018, a Bangladesh Bank probe uncovered widespread irregularities in how Janata Bank approved loans.
The central bank subsequently directed Janata to take legal action against those responsible. However, no legal measures have been taken to date, exposing the bank鈥檚 unwillingness鈥攐r inability鈥攖o address systemic corruption.
Janata Bank鈥檚 woes don鈥檛 end with AnonTex.
A shocking 55 per cent of the bank鈥檚 total loans are concentrated among just 10 industrial groups, nine of which, including AnonTex, are defaulters.
These influential borrowers include Beximco (Tk 24,682 crore), S Alam (Tk 10,100 crore), Crescent (Tk 3,789 crore), Bashundhara (Tk 2,573 crore), Ranka (Tk 1,633 crore), Ratanpur (Tk 1,227 crore), and Sikder Group (Tk 829 crore).
Their collective failure to repay loans has plunged the bank into financial disarray, with 61 per cent of its total loans now classified as non-performing.
Default loans, which stood at Tk 5,818 crore in 2017, skyrocketed to Tk 60,489 crore by June 2024.
By the first nine months of 2024, the bank had incurred a loss of Tk 1,504 crore.
To cover this massive defaulted amount, Janata Bank was required to maintain a provision of Tk 44,636 crore. However, the cash-strapped institution could only manage Tk 5,550 crore, leaving a provision shortfall of Tk 39,086 crore.
As a result, the bank鈥檚 capital shortfall surged to Tk 33,921 crore as of September 2024, signaling a severe financial crisis and raising questions about its sustainability.
Despite mounting evidence of malpractice, systemic apathy has allowed these groups to evade accountability, deepening the financial sector鈥檚 ongoing credibility crisis, bankers said.
