The board of directors of National Bank has decided to appoint acting managing director (MD) Shah Syed Abdul Bari as MD.
The bank sent the board's decision regarding appointment of an MD to Bangladesh Bank on Monday for approval, said sources of the National Bank.
The bank's board of directors took the decision to appoint an MD at a virtual meeting, presided over by Monwara Sikder, chairman of the bank, held on Monday.
According to the Banking Companies Act, the post of MD cannot lay vacant for more than three months. If there is vacant for any reason, the central bank can appoint an administrator. The Bangladesh Bank had set a deadline of 28 April to fill the post of MD.
In these circumstances, the appointment of MD was finalised at the urgent board meeting and the decision was sent to the central bank for approval.
When asked, central bank spokesperson and executive director Sirajul Islam told The Business Standard he is not yet to know that the application for approval of the decision of the National Bank has reached Bangladesh Bank.
However, the central bank will decide on the matter after scrutinising the application in accordance with the rules for the appointment of MD, he added.
Meanwhile, instability is prevailing in the bank over irregularities in loans disbursement, lying vacant of the post of managing director (MD), conflict in the board of directors over control of the bank after the death of its Chairman Zainul Haque Sikder in February.
Earlier, additional managing director ASM Bulbul has been discharging duties as acting MD. Then, the bank decided extension of Bubul's tenure as the acting MD, violating the rules. But the central bank rejected the extension of his tenure.
Then the bank, on 13 April, appointed Shah Syed Abdul Bari as acting MD. He started his banking career in 1984 by joining AB Bank. He then worked for American Express Bank, Prime Bank and Mercantile Bank.
Launched in 1983, the bank currently has more than Tk45,000 crore in deposits and about Tk43,000 crore in loans.
In the last five years, the bank's defaulted debt has increased to over Tk2,085 crore from Tk1,342 crore. About 90% of defaulted loans are bad loans. The bad loans has increased to Tk1,832 crore from Tk1,287 crore in the last five years.