Rupali Bank performs poor during last 2-yr

* Jahangir became MD despite having two 3rd class
* Unable to pay dividend in 2-yr
* Downgraded to ‘Z category’

Staff Correspondent: Huge burden of defaulted loans on the head. The provision deficit has also increased abnormally. Could not pay dividend for two consecutive years. As a result, the bank has come down to ‘Z category’. The name of this institution is Rupali Bank Plc, which is plagued with multifaceted problems. Those concerned said that the distress of the bank listed in the capital market is due to the inefficiency of the top leadership.
Mohammad Jahangir is the Managing Director (MD) and CEO of Rupali Bank since August 14, 2022. Since he took charge, the condition of the bank has been deteriorating day by day in various indicators. On December 31, 2019, Rupali Bank’s defaulted loan amount was Tk 4,359 crore, which is 15.25 percent of the loan disbursed till then. But at the end of last December, the amount of defaulted loans increased to Tk 7,847 crores. 17.81 percent of the disbursed loans of the bank are now in the default account. Due to the increase in defaulted loans, the amount of provisioning deficit is also increasing. At the end of last year, the provision deficit of the bank stood at Tk 2,273 crores.

Due to this condition of the bank, the stakeholders have raised questions about the competence of the current MD. They say that Rupali Bank has been led by professional and experienced bankers since its inception. From time to time the bank fell into various crises but it has moved forward with considerable success relying on their professionalism. But even though the current MD Mohammad Jahangir has spent his entire career in this bank, many things including his appointment, educational qualifications have put the top position of the bank under question.
According to the introduction of the current MD on the website of Rupali Bank, Mohammad Jahangir started his banking career in Rupali Bank in 1990 as an officer. He also gave the same information to the Financial Institutions Department (FID). But the Bank’s Human Resource Policy, 2011 states that due to the process of privatization in 1986 through conversion of Rupali Bank Limited into a public limited company, the recruitment of manpower was stopped for more than 12 years till 1998. Later in 1998, 2000, 2001 and 2009 officers and senior officers were recruited through the Bankers Recruitment Committee (BRC) controlled by the central bank. Where the appointment of officers in the bank was stopped for 12 years, the question has been raised as to how Mohammad Jahangir joined as an officer.
Mohammad Jahangir retired from the permanent post of Rupali Bank while holding the post of DMD before his contractual appointment as MD. Later, the post-retirement benefits he took counted his service from 1985 onwards. In other words, the information he gave in the FID about the appointment of an officer in 1990 is not true. The real truth is that he joined Rupali Bank as an employee on January 19, 1985. Later he got promoted and became an officer.
When contacted about these issues, Mohammad Jahangir told, “Questioning about the qualifications is nothing but the gossip of a special group.” It will not be advisable to listen to someone’s unsubstantiated words. Today, I am able to lead the bank from the top position because of my competence, experience and concentration. I want to go far ahead. Now the bank is doing well.
3rd class in two exams
In a circular issued by Bangladesh Bank in December 2018, it has been stated that third class or division will not be accepted at any stage of the educational career for appointment to the post of chief executive of the bank. Whereas the current MD of Rupali Bank Mohammad Jahangir has passed with third class in both the higher secondary and graduation (B,Com) exams. He was appointed as MD of Rupali Bank in 2022 despite getting two third classes in his education. The sector stakeholders think that there has been a gross violation of Bangladesh Bank’s circular.
Bangladesh Bank spokesperson and executive director Md. Mejbaul Haque told, “The Financial Institutions Department of the Ministry of Finance has sent a proposal for the appointment of the Managing Director and CEO of the Government Bank. We check educational qualification, default and other experience and give approval for final recruitment. FID appoints based on the approval of Bangladesh Bank. Nobody special; Whoever violates the rules will be punished.
Sheikh Mohammad Salim Ullah, Secretary of the Bank and Financial Institutions Department told, “The appointment has been made according to the rules.” And without seeing the documents about the fraud, I will not say much at the moment.
According to Rupali Bank’s Human Resource Policy, 2011, 6 years of work experience in the Bank including 2 years of service as a junior officer is required for graduate or post graduate degree holders. Third division or class is not admissible for officer posts. And the Rupali Bank (Employees) Employment Regulations, 1981 says that in case of direct recruitment of officers, minimum graduation degree from a recognized university is required. However, the minimum age for direct recruitment is 21 years and maximum 25 years. For promotion to the post of officer, first of all, an employee must have a graduation pass and two-part diploma pass of the Institute of Bankers examination with a minimum of 4 years of working experience in a bank. Besides, any employee should have minimum 5 years working experience in bank with one part pass of Institute of Bankers examination. Apart from this, a graduate pass employee will be considered for appointment as an officer only if he has 6 years of experience. He passed Banking Diploma Part-1 in 1999 and Part-2 in 2008. In this case too, the rules have been violated.