Bank headquarters in question ordered to address issue regarding a Tk389 crore loan default by EXIM Bank.
The head office of EXIM Bank in Gulshan has been temporarily seized by a Dhaka court due to a loan default case. The court's decision comes as part of legal actions related to a significant unpaid loan of around Tk389 crore that EXIM Bank owes to Bank Asia[1][2][3].
The court issued a show-cause notice, asking why the head office of EXIM Bank should not be permanently seized[4]. This temporary attachment serves as a legal step to ensure the court's control over the EXIM Bank’s head office property amid the ongoing case. The seizure is a measure linked to the loan recovery proceedings initiated by Bank Asia.
The court has also instructed EXIM Bank to respond within 15 days regarding the show-cause notice[1]. The next hearing is scheduled for August 21, during which EXIM Bank is expected to present its reply[2].
It is worth noting that Bangladesh Bank has initiated efforts to merge EXIM Bank with other banks due to its worsening financial condition[5]. However, the temporary seizure of the bank's head office is a separate issue, directly related to the defaulted loan amount.
Bank Asia argued that the seizure of EXIM Bank was necessary to safeguard the possibility of loan recovery[3]. The enforcement of judicial authority to secure assets potentially linked to the debt owed reflects the seriousness of the loan default.
As the situation unfolds, it is essential to monitor the developments closely to understand the implications for EXIM Bank and the banking sector in Bangladesh.
[1] The Financial Express: https://www.thefinancialexpress.com.bd/ [2] The Daily Star: https://www.thedailystar.net/ [3] Prothom Alo: https://prothomalo.com/ [4] The Business Standard: https://www.tbsnews.net/ [5] The Bangladesh Post: https://www.thebangladeshpost.com/
- The judicial actions against EXIM Bank's head office, due to a significant unpaid loan, have expanded to include a show-cause notice seeking reasons for the permanent seizure, considering the bank's debt to Bank Asia worth around Tk389 crore.
- The ongoing loan recovery proceedings initiated by Bank Asia, driven by the default on a Tk389 crore loan, have led to the enforcement of judicial authority to secure assets pertaining to the debt obligations, as observed in the seizure of EXIM Bank's head office.
