Staff Correspondent :
Bangladesh Bank has uncovered three additional incidents of alleged loan fraud at state-owned Rupali Bank, including one case in which the bank’s Managing Director, Kazi Wahidul Islam, has reportedly been directly implicated. The central bank’s inspection team also found evidence that former Rupali Bank executive Parsuma Alam, currently serving as Deputy Managing Director (DMD-1) of Agrani Bank, provided approximately Tk 4.5 billion in irregular credit facilities to a customer. Separate investigations also revealed irregularities involving loans worth Tk 200 million and Tk 110 million disbursed by officials of Rupali Bank’s Pallabi Branch.
On April 29, Bangladesh Bank’s Supervision Department formally requested the Audit Committee of Rupali Bank’s Board of Directors to conduct a comprehensive investigation and take necessary action under the Bank Company Act. According to the letter, inspection activities were carried out on October 30, 2025, following complaints received in September of that year.
The inspection focused on allegations of corruption, abuse of power, loan fraud, money laundering, and irregularities in promotions involving senior executives, deputy managing directors, and branch officials. The central bank reported finding serious weaknesses and irregularities in the bank’s credit management and human resource administration systems.
The inspection revealed that two companies—Avanti Color Tex Limited and Crony Apparels Limited, clients of Rupali Bank’s S.K. Road Branch in Narayanganj—received credit and Letter of Credit (LC) facilities in violation of banking regulations over an extended period.
Investigators found that numerous back-to-back LCs were opened without essential documentation, including proof of export proceeds, credit reports, export documents, and bills of entry. The companies are owned by businessman Aslam Sani, a former Vice President of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA), who is reportedly absconding along with family members.
The inspection team found that hundreds of crores of taka in loans were approved and disbursed without adequate collateral, contrary to the bank’s credit policy. In several cases, land, buildings, and machinery were listed as collateral without proper valuation reports, ownership verification, or legal documentation.
Investigators further noted that approximately 300 LCs involving transactions worth around USD 158 million were established among companies under common ownership. Bangladesh Bank believes these transactions may have been used to create accommodation bills rather than facilitate genuine trade, raising concerns of potential trade-based money laundering. As a result, more than Tk 300 crore in forced loans have accumulated in favor of Avanti Color Tex Limited.
Sources close to the investigation stated that Parsuma Alam approved many of these facilities while serving as Manager of the S.K. Road Branch for nearly six years. Despite the alleged irregularities, he subsequently received promotions and was eventually appointed Deputy Managing Director before moving to Agrani Bank in a similar senior role.
According to sources, such large-scale irregularities would not have been possible without support from senior executives and certain members of the board. They further alleged that Alam escaped accountability due to his reported connections with controversial business interests.
Bangladesh Bank inspectors also identified serious irregularities involving Mastex Industries Limited, a client of Rupali Bank’s Gulshan Corporate Branch. The company allegedly received LC facilities beyond approved limits, collateral was accepted without proper valuation, and back-to-back LCs were opened against questionable export contracts.
The inspection report states that some loans were rescheduled without genuine down payments and that loan balances were artificially reduced through internal adjustments rather than actual repayments. Inspectors reportedly found evidence linking Managing Director Kazi Wahidul Islam directly to these practices.
The report also raises concerns about widespread irregularities in the 2024 supernumerary promotion process. Bangladesh Bank found partial evidence supporting allegations that promotions were influenced through favoritism, abuse of authority, and possible bribery.
Of the 1,370 officials promoted, interview and evaluation committees were granted significant discretion in awarding marks, yet no transparent or objective assessment criteria had been established. Investigators found instances where less-qualified candidates received unusually high interview scores, while more qualified officers received lower scores.
The resulting promotion list significantly altered seniority rankings, depriving many deserving officials of their rightful positions. Particularly concerning was the promotion of some officers despite their involvement in financial irregularities, audit objections, or disciplinary histories.
Bangladesh Bank stated that these findings have further strengthened allegations of favoritism and undue influence within the promotion process.
Although investigators could not directly prove allegations that Pallabi Branch Manager Razzakul Haidar accepted bribes in exchange for approving a Tk 200 million loan, they found that the borrower’s risk assessment score did not meet acceptable standards.
The inspection also indicated that loan proceeds may have been transferred to another bank to settle previous liabilities. Investigators concluded that regulations were bypassed and information was misrepresented during the approval process, leaving open the possibility of improper influence or undisclosed benefits.
Bangladesh Bank’s inspection team concluded that officials from several branches and the head office repeatedly ignored internal policies, regulatory directives, and risk management procedures while approving loans and LC facilities. These actions contributed to a substantial volume of forced loans and heightened risks of trade-based money laundering.
While direct evidence of bribery was not established in all cases, inspectors found significant indications of abuse of power, lack of transparency, and biased decision-making in both credit approvals and promotions.
Given the scale and seriousness of the alleged misconduct, the inspection team recommended departmental, regulatory, and, where necessary, criminal investigations against the officials and decision-makers involved.
When contacted for comment, Rupali Bank Managing Director Kazi Wahidul Islam provided differing responses through WhatsApp messages. Initially, he expressed interest in discussing the matter in person. Later, he claimed that “all allegations are false” and stated that “Parsuma Alam is not responsible and the matter has already been settled.” In a subsequent message on June 9, he said that Bangladesh Bank had assigned the matter to the Chairman of the bank and therefore he had no further comments.
Attempts to reach Rupali Bank Board Chairman Nazrul Huda by phone and text message were unsuccessful. Similarly, efforts to obtain comments from Parsuma Alam through Agrani Bank’s Public Relations Office did not yield any response.
