NRBC in Crisis: AGM sparks controversy

Gazi Anowar :

NRB Commercial Bank PLC (NRBC), a fourth-generation private commercial bank listed on the stock market, is facing a serious governance crisis, with allegations of irregular recruitment, misuse of authority, and financial mismanagement rocking the institution.

The turmoil follows a controversial board reshuffle by Bangladesh Bank on 12 March, which shareholders and insiders say has worsened instability rather than restoring professional oversight.

At the centre of the controversy is Chairman Md Ali Hossain Prodhania, who is reportedly running the bank in an unorthodox manner. Sources claim he often stays in the office past 11pm, compelling a select group of officials to remain with him – not for regular banking operations, but to facilitate recruitment and commission-based dealings.

The situation has intensified ahead of the bank’s Annual General Meeting (AGM) scheduled for tomorrow (Thursday). Shareholders have labelled the AGM “illegal,” arguing it is being held without proper approval despite NRBC’s listed status under the Bangladesh Securities and Exchange Commission (BSEC) and the Public Limited Company Act. Many are demanding immediate cancellation and the formation of a new board from among shareholders.

Financial performance under the current board has also raised concerns. NRBC has announced “no dividend” for the financial year ending 31 December 2024, a sharp fall from the 11 per cent dividend declared last year. The bank had set a business target of Tk 900 crore for the year but posted only Tk 125 crore in operating profit in the first six months-well below the previous average of Tk 300 crore for the same period.

Top-level appointments – including Chief Financial Officer, Chief Human Resources Officer, Chief Credit Officer, Chief Legal Officer, and Chief Operating Officer – are alleged to have been made through personal connections and financial transactions. More than 100 management trainees and junior staff were also recruited via processes criticised as non-transparent.

Routine banking operations are reportedly slowing, with pending letters of credit, backlogs, and unclear promotion policies. Staff claim they are forced to stay late, while the chairman reportedly spends lavishly on luxury cars and unnecessary renovations.

Both Chairman Prodhania and Managing Director Dr Md Touhidul Alam have denied the allegations, insisting the bank operates in compliance with all regulations and that the AGM has received necessary approvals from Bangladesh Bank and BSEC.

Despite official assurances, shareholders and insiders warn that a lack of transparency and accountability has eroded confidence, leaving NRBC mired in controversy and uncertainty.