BB summons Padma Bank MD for negligence of duty

The Bangladesh Bank has asked Padma Bank Managing Director Md. Ehsan Khasru to explain his trip abroad without taking approval from the banking regulator.

In March last year, the BB has made it mandatory for the MDs of all banks to obtain the central bank’s approval for foreign trips.

If the MD stays abroad for long periods, his/her absence holds up official activities along with creating managerial, operational and financial risks for the bank, which is unacceptable, said the BB notice on March 23 last year.

The bank MDs were also advised to abstain from staying aboard for lengthy periods.

In case of essential visits, the MDs will have to file applications to the central bank 15 days beforehand along with the reason for the trip.

The approval of the bank board is mandatory for foreign trips.

But Khasru, who is also the chief executive officer of Padma Bank, has failed to take the permission of the BB before flying.

Subsequently, on December 22 the central bank issued a letter to Khasru asking him to explain his negligence within January 7.

“This kind of negligence is a big obstacle in establishing good governance of the bank,” said the central bank letter.

Khasru could not be reached at the time of filing the report.