BB sits with Padma Bank, SBAC CEOs

The Bangladesh Bank yesterday sat with the managing directors of Padma Bank and South Bangla Agriculture and Commerce (SBAC) Bank to know about the reasons for the reported resignation.

Habibur Rahman, managing director of SBAC Bank, and Tarek Reaz Khan, managing director of Padma Bank, stepped down last week citing personal reasons.

The duo met separately with central bank Governor Abdur Rouf Talukder and Deputy Governor Abu Farah Md Nasser, said a senior official of the BB seeking anonymity.

The official said the governor wanted to know the actual reason for their resignations and asked them to inform the BB if they had come under any pressure from the board of directors.

In 2014, the central bank said if a managing director wants to resign before the end of their term, he or she would have to submit an application to the chairman of the bank and the BB a month before and explain the reasons.

In recent months, CEOs of some private banks, particularly the problem-hit lenders, have resigned. And it comes at a time when the banking sector is facing challenges, including soaring non-performing loans and lack of good governance.

Contacted, Tarek Reaz Khan told The Daily Star yesterday that it was good that the governor had met the MDs who resigned.

"The central bank called me and I met with the governor and the deputy governor."

"I informed them that my resignation was for personal reasons. I also told them that my wife is suffering from cancer."

A senior official of SBAC Bank said Rahman's resignation was not official and he is coming to office. "He was in office on Sunday."

Rahman could not be reached for comments.

BB Executive Director and Spokesperson Md Mezbaul Haque declined to comment on the issue.