The Bangladesh Bank (BB) has halted the disbursement process of a TK670 crore loan by Southeast Bank, which was approved by the bank to give a securities company to buy shares.

The loan proposal was passed in the last board meeting of this private bank. However, BB intervened and halted the proposal because the process of presenting and approving it in the board meeting of Southeast Bank was unclear or possibly not compliant with regulatory requirements.

The Financial Integrity and Customer Services Department (FICSD) sent a letter in this regard to the managing director (MD) of the bank on Sunday. On the same day, a special inspection was carried out by the FICSD at Southeast Bank.

FICSD Additional Director Mohammad Zakir Hossain headed the Central Bank’s inspection team.

In the letter signed by him, he said, “A special inspection is being carried out at Southeast Bank under the powers conferred by section 44 of the Bank Companies Act-1991. In order to facilitate this ongoing inspection, you are advised not to release any money, not to purchase any stock through the securities company, as approved in agenda no. 9 of the 721st Board of Directors meeting of the bank held on February 20.”

To know further developments, this correspondent tried to talk to Southeast Bank’s Managing Director (MD) Nuruddin Md Sadeque Hussain. He was called several times but did not receive it.

However, several officials of the concerned department of the bank said that they had received the letter given by the head of the inspection team of the central bank. The matter has been informed to the bank's chairman, MD and all concerned.