Probe underway into Probashi Kallyan Bank, other financial institutions over past irregularities: Finance minister

Finance Minister Amir Khosru Mahmud Chowdhury told parliament today (12 July) that investigations are underway into irregularities, corruption and large-scale financial misconduct committed across the country's financial sector over the past several years, with legal action against those responsible continuing.

The minister said restoring financial discipline is a top government priority, with a sector-wide "cleaning process" underway to investigate irregularities, including those at the Probashi Kallyan Bank.

He made the remarks while responding to lawmakers' questions during a question-and-answer session at parliament, presided over by Speaker Hafiz Uddin Ahmed.

Raising a question on irregularities and defaulted loans at the Probashi Kallyan Bank, Gazipur-4 MP Salauddin alleged that during the previous "fascist" government's tenure, hundreds of crores of taka had been siphoned off through politically influenced lending, bribery and syndicates operating under the guise of loan disbursement.

"As a result, around 61% of the bank's loan portfolio has now turned into non-performing loans."

He further alleged that the same syndicates continue to influence loan approvals and distributions, and called for an impartial investigation and the dismantling of those networks.
In response, the minister said re-establishing financial discipline is essential for achieving sustainable economic growth and prosperity.

He noted that investigations are not limited to a single bank but are being conducted across multiple financial institutions.

"Action has already been taken against several individuals", he added.

"The accumulated irregularities in the financial sector cannot be eliminated overnight," the minister said, assuring parliament that the government's financial sector cleanup would continue until accountability is ensured.

Later, Brahmanbaria-2 MP Rumeen Farhana sought details on the government's plans to provide long-term, low-interest loans for establishing cold storage facilities and agro-based industries in Sarail, Ashuganj and Bijoynagar.

Replying to the question, the finance minister said that, with the aim of strengthening food security and generating rural employment, Bangladesh Bank has increased its refinancing fund for agro-processing industries from Tk1400 crore to Tk2000 crore.

Under the scheme, entrepreneurs can obtain loans of up to Tk100 crore at an interest rate of 7%, with priority given to rural areas.

He also said a Tk10,000 crore refinancing scheme has been established for the agriculture and rural sectors.

"For the 2025-26 fiscal year, the agricultural credit disbursement target has been set at Tk39,000 crore. In addition, concessional loans at a 4% interest rate are being provided for the cultivation of import-substituting crops. Since these facilities are available nationwide, there is no need to introduce separate loan programmes for specific upazilas," he added.

In a supplementary question, Rumeen Farhana pointed out that between 50% and 70% of loans disbursed by state-owned Sonali, Rupali, Janata, Agrani and BASIC Bank over the past 15 years have become defaulted.

She specifically alleged that nearly 70% of Janata Bank's defaulted loans were linked to a handful of business groups, including S Alam, Beximco, AnonTex Group and Bismillah Group, and sought clarification on the government's actions against those entities.

Although acknowledging that the question was not directly related to the original topic, the finance minister described it as highly significant.

He said, "The government would make no compromise with those who had looted public money and fled abroad. Cases have already been filed against many individuals, investigations are ongoing, and legal proceedings to seize their assets have begun."

He noted that detailed information on the matter had previously been presented in parliament and reaffirmed the government's firm stance.

Later, Kurigram-2 MP Atiqur Rahman raised concerns over irregularities and institutional weaknesses at Rajshahi Krishi Unnayan Bank. 

Atiqur alleged that, in the past, a group had looted the bank using the name of the Awami League and was now attempting to continue its influence by invoking the BNP.

He asked whether the government planned to investigate the matter and ensure the bank remained farmer-friendly and free from political interference.

In reply, the minister said there was no opportunity under the current government for banks to be captured or influenced politically through the BNP or any other political party.

He said, "No appointments are now being made on political considerations. A comprehensive review of the boards of directors and management structures of banks is currently underway."

Khosru expressed hope that tangible improvements would become visible once the process is completed.

Meanwhile, Chandpur MP Mohammad Abdul Hannan raised a question regarding youth employment and the development of information technology in Faridganj upazila.

Responding on behalf of the government, Posts, Telecommunications and Information Technology Minister Faqir Mahbub Anam said infrastructure development at the upazila service and ICT training centre had already been completed, alongside efforts to ensure internet connectivity to expand digital education.

Mahbub added that the government's ICT infrastructure development initiatives would play a significant role in creating employment opportunities for young people in rural areas.