 establishes as a banking company under the

companies Act 1913 launched its operation in 1989.

 It was incorporated under the Act on the 2nd of
August, 1988. The Bank started its operation from
the 21st of January, 1989.
 Bank started as a joint venture enterprise of the BCC
Foundation with 70 percent shares and the
Government of Bangladesh (GOB) with the remaining
30 percent shares.
 The BCCI, the Government of Bangladesh
took over 100 percent ownership of BASIC on
4th June 1992.
 Thus there is state-owned. However, the Bank
is not nationalized; it operates like a private
bank as before.
No. Directors Name Designation Year

1. Mr. Sheikh Abdul Hye Bacchu Chairman 2009 -13

2. Mr. Fakhrul Islam Director 2009 -13

3. Mr. Shubhashish Bose Director 2009 -13

4. Mr. Shyam Sunder Sikder Director 2009 -13

5. Ms. Neelufar Ahmed Director 2009 -13

6. Ms. Quamrun Haher Ahmed Director 2009 -13

7. Mr. Akm Rezaur Rahman Director 2009 -13

8. Mr. Md. Anwarul Islam, FCMA Director 2009 -13

9. Mr. AKM Kamrul Islam, FCA Director 2009 -13

10 Mr. Anis Ahamad Director 2009 -13

11 Mr. Kazi Faqurul Islam Managing Director 2009 -13

No. Directors Name Designation Year

1. Mr. Alauddin A. Majid Chairman Present

2. Mr. Kazi Shfiqul Azam Director Present

3. Begum Parag Director Present

4. Mr. Hasan Mahmood, FCA Director Present

5. Begum Raihana Aneesa Yusuf Ali Director Present

6 Mr. Md. Mamun Al Rashid Director Present

7. Mr. Khondoker Md. Iqbal Managing Director Present

 Basic Bank as a state sector bank was doing satisfactorily
well. Within a couple of years the bank is steeped in scandal.
Involving the misappropriation of 45 billion tk. Worse still the
government is not bothered about trying the accused
persons. Basic Bank chairman Sheikh Abdul Hye Bacchu has
quit amid growing allegations that he misappropriated funds
by approving shady loans of several thousands crore takas.
The default loans of BASIC Bank soared to Tk 2,557 crore last
March from Tk 1,417 crore in February. Bangladesh Bank (BB)
has appointed an observer to the Basic bank.
 “BB in July signed a memorandum of understanding with BASIC Bank
imposing 15 conditions on the state-owned bank to improve its financial
state and restore credit discipline. An observer would be appointed to
the bank and its top management restructured, if it failed to fulfill the
conditions, the MoU(Memorandum of Understanding) stated”.

 Bangladesh Bank detected anomalies worth more than Tk 4,500 crore

and urged the finance ministry to dissolve the BASIC Bank board of
directors, a couple of months ago.

 Muhith, while talking to reporters Saturday at the secretariat,

acknowledged that Hai, who was appointed chairman in 2009, was
rewarded reappointment in 2012.
 “The finance ministry had been dillydallying on
taking a firm decision on the loan scam in the
BASIC Bank.”
 “The ACC filed 56 cases over the loan
irregularities of the bank, but the bank's former
Chairman Abdul Hye Bachchu was not charged in
any of the cases.”
 “The Chairman of Anti Corruption Bureau tried to
clear himself of responsibility, saying that the
matter was being looked into and the persons
would be arrested once the charges were made.”
 More than three organization names were
come out after investigation of the reporter of
Jamuna TV, but we showed only three
organizations’ scam scenario in below:
 1. M/S SPN Enterprise
 2. A. B Trade Link
 3. B Alam shipping
 The owner of M/S SPN Enterprise withdrawn
55 crore taka of their loan money on the date
of 9th October 2012 by submitting fake
Company information as well as residence
address.
 The owner of A.B Trade link Mr. ABM Russell
also withdrawn 45 crore taka of their loan by
submitting fake information as well as the
mortgage documents. The Company name
does not exist in that place which was
mentioned in their documents.
 B Alam shipping line who withdrawn 13 crore
taka, but the case was showed somewhat
unnatural to us because they applied for the
loan on 20 May 2013 within the next 2 days
they had withdrawn 10 crore cash, where the
Chairman of the board of Basic Bank went to
abroad. Without the Chairman permission
Bank has no authority to allow withdrawing
more than 1 crore.
 The loan receiver had transferred money to
the chairman account as well as to panna’s
business account of BD Computers. Panna is
the younger brother of Chairman of Basic
Bank.
 Date Loaners Company’s Name Times Amount of Money

10/5/2011 BD Pipes 1 4 Million tk

4 million four
12 & 16/8/12 Jamuna agro Chemical 2 hundred thousand
tk

25/7/12 Jamuna agro Chemical 10 million tk

10 & 30/4/12 Sonar Bangla Natural 2 17 million five

hundred thousand
 In the year of 2012 the Bank Chairman got
eleven million taka from nameless company
Brothers Enterprise for his Bagerhat abdul hey
school which is situated in Bagerhat zilla.
Capital Banani Company had taken 30 million
taka from SFG shipping company. Capital
Banani is considered as Chairman benefited
Company. SFG Company had also sent money
of 30 million tk to Best Holding Company,
this company owner is Panna.
Profit and Loss Account
(Million Taka)
2010 2011 2012 2013 2014
Interest Income 4337.04 7099 11020.88 14808.95 12,070.32
Interest on deposit and borrowings 3033.56 4911.66 8544.6 -13108 -13,466.23
Net interest income 1303.48 2187.34 2476.27 17010.04 -1,395.91
Commission, exchange and brokerage 642.57 785.34 693.13 737.2 658.52
Other operating income 476.67 189.23 129.09 119.73 125.61
Total operating income 3074.25 3913.55 4857.67 4230.79 1647.33
Salaries, Allowances etc 877.12 993.57 1160.05 1767.83 1,855.36
Depreciation and other non-cash expenses 67.56 79.68 109.4 152.69 181.71
Other operating expenses 236.37 270.01 615.82 349.02 240.96
Total operating expenses 1357.2 1565.03 2247.58 2760.59 2771.71
Profit before provision 1717.05 2348.52 2610.09 1470.2 -1,124.38
Provision for loan & Advances 326.27 404.34 1561.18 1338.52 -
Profit before tax 1325.17 1999.99 1075.88 118.49 -1,115.24
Provision for tax 723.27 1038.97 1079.19 732.12 45.34
Net income 660.93 976.11 27.89 -531.53 -1,100.16
Earning per share (Taka) 33.64 41.4 0.95 -18.04 -37.33

Comparative Profit & Loss Account

(In Percent)
 Bank chairman has no legal right to approve
those loans which are higher than 1 Corer
taka.
 Bank purchased a land of 80 crore taka which
was dereliction by the Government.
 The land price was higher than the market
price of 20 crore tk.
 The Bank had faced huge loss in the year of
2013 & 14 for the scam.
 Basic bank had paid 45 lac 31 thousand taka
to the lawyer of Barrister Kamrujamman for
operating their legal suit at the very
beginning of that case which was unusual for
other lawyer because normally lawyer gets at
best 4 to 5 lac taka in total.
 In a board meeting number of 316, 317, 318
and 319 were approved a higher loan. For
instance the bank was approved 117 crore
taka in a board meeting no. of 317 without
acceptance of other board members.
 Government will have to take legal action
against the board chairman as well as other
suspected board members.
 Anti Corruption Bureau has to be more
efficient against all these corruptions.
 Government will have to take an action to
recover of that money from those who were
involved in these scams.
 At the end we can say that the Bank would be
survived but the more important thing is to recover
the lost money. The Government should take legal
stand against those suspicious directors, Chairman
and loaner. Find out those loaners who submitted
fake information to the bank and took millions of
taka. If government takes proper action against all
these scams then these type of scams will not happen
again and again.
 Newspaper – The Daily Star
◦ Web address:
http://archive.thedailystar.net/beta2/tag/basic-bank/
 Newspaper – New age bd
◦ Web address: http://newagebd.net/28233/scandal-hit-
basic-chairman-quits/
 Newspaper – The Independent bd
◦ Web address:
http://www.theindependentbd.com/printversion/details
/33441
 Basic Bank Limited
◦ Official web address:
http://www.basicbanklimited.com/financial_reports.php