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, reports Daily Sun.

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.

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, 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 the agenda no. 9 of the 721st board of directors meeting of the bank held on February 20.”

Bd-pratidin English/Tanvir Raihan