National Bank delivered false information into the Bangladesh Bank’s credit information bureau database to hide the default loans of one of its clients, said a Bangladesh Bank letter.
National Bank, the country’s first private sector bank with a prosperous past, became a losing concern due to massive loan irregularities, lack of good governance and conflict among directors.
Bad loans in six private banks increased by about 55 percent in the first nine months of the year, raising further alarms about the health of the banking sector.
About one-third of the private banks’ defaulted loans at the end of September are concentrated with six banks, raising further alarms about the health of the banking sector.