Southeast Bank MD sent on forced leave amid loan irregularity

Southeast Bank

Dhaka, May 5 - Nuruddin Md. Sadeque Hossain, managing director (MD) of Southeast Bank PLC (SEBL), has been sent on a three-month forced leave, effective Monday, said sources from SEBL and Bangladesh Bank.

This leave will continue until August 4th. During this period, Deputy Managing Director (DMD) Abdur Rahman Chowdhury will serve as the acting MD of the bank. The decision was made by the bank's Board of Directors, held on Sunday.

Sources at Southeast Bank have indicated that various loan irregularities occurred at the bank during the tenure of former Chairman Alamgir Kabir. Investigations into these irregularities are currently underway.

In the interest of the investigation, Managing Director Nuruddin has been sent on mandatory leave. Future actions regarding the MD will be determined based on the outcome of the investigation.

Nuruddin assumed the role of managing director of Southeast Bank on April 5, 2023. He joined the bank on June 4, 2003, as an Assistant Vice President.

It is reported that the Bangladesh Bank is maintaining strict oversight on Southeast Bank and several other commercial banks concerning loan irregularities, defaults, and governance deficits.

This move by the Bangladesh Bank aims to ensure transparency and accountability in the banking sector. Following the advice of the Bangladesh Bank, the MDs of six other commercial banks have been similarly sent on leave in the past few months. Notably, Muhammad Munirul Maula, the MD of Islami Bank Bangladesh, was sent on a three-month mandatory leave last month.

The other banks are - First Security Islami Bank, Exim Bank, Union Bank, Global Islami Bank, Social Islami Bank, and ICB Islami Bank. If any irregularities are found against the managing directors of these banks, action will be taken according to the law, said the central bank sources. - UNB