The Bangladesh Bank has dissolved the board of the troubled National Bank for the third time and appointed seven new directors, including Abdul Awal Mintoo, a shareholder of the bank, to the board.
BB governor Ahsan H Mansur in an order said that the central bank dissolved the bank's board for the sake of the depositors鈥� money and public interest.
Newly appointed two other directors Moazzem Hossain and Zakaria Taher also hold shares in the bank.
Four independent directors are former Bangladesh Bank executive director Md Zulkar Nain, former Shimanto Bank PLC managing director Mukhlesur Rahman, University of Dhaka鈥檚 Institute of Business Administration professor Melita Mehjabeen and Chartered Accountant Md Abdus Sattar Sarker.
BB officials said that the financial condition of the bank deteriorated due to the now-dissolved board鈥檚 failure in taking policy decisions.
The board was also engaged in activities against the interest of the depositors, they said.
The central bank dissolved and restructured the board of directors of National Bank for the first time in December 2023, and dissolved that board again in May 2024 for the second time.
The previous board headed by chairman Khalilur Rahman had an alleged link with S Alam Group.
National Bank has been struggling with liquidity shortage for the past couple of years and the crisis has intensified in recent times.
The bank provided significant loans to various business groups without proper collateral and continued to fail recover the amounts, leading to the bleak situation.