Bangladesh Bank has decided to look into recruitment and promotion at BASIC Bank to review alleged irregularities, a BB official said yesterday.
“The central bank will investigate the issues following allegations that the bank's board of directors violated BB directives and appointed and promoted unqualified people in crucial positions,” said the official in the BB's off-site supervision department.
The central bank yesterday sent a letter to BASIC Bank about the investigation.
The state-run bank also violated its own recruitment rules to place chairman's own people in different positions, the official said, asking not to be named.
According to BB rules, the managing director or CEO of a bank would supervise the appointment and promotion of all officials except the two posts below him.
The bank's board of directors cannot interfere in the process.
But it has been alleged that BASIC Bank's board of directors had even interfered in the appointment of petty officials.
The present board has appointed a huge number of people since it took charge in 2009.
In 2009, the bank had 34 branches with 750 employees. But the number of branches now rose to 64 and employees to more than 3,000.