The Bangladesh Bank (BB) has asked to remove Mercantile Bank Director Shahid Reza from his position as several allegations of financial anomalies have been substantiated against him.
The allegations brought against him include - breaching loan regulations and being associated with the scam of PK Halder.
The central bank issued an office order in this regard on Tuesday, saying the step was taken following due procedure as per the provision-46 of the Bank Company Act-1991.
As a consequence, Shahid Reza will not be allowed to be involved in the management process of the bank or any other bank companies in the next two years.
The decision was followed by phases of hearings, arguments and sittings throughout the last few months.
He was served with a show-cause notice on 6 January and was asked to respond within the next 15 days.
According to sources in Mercantile Bank, the annual general meeting (AGM) of bank is going to be held on Wednesday, which will be followed by a board meeting.
The Bangladesh Bank order is likely to be discussed and implemented in the board meeting.