Cenbank rejects reappointment of IIDFC MD Golam Sarwar

The Bangladesh Bank has rejected the reappointment of Golam Sarwar Bhuiyan in the post of managing director of Industrial and Infrastructure Development Finance Company (IIDFC) Limited.

The decision was conveyed to the IIDFC chairman last week through a letter stating that Bhuiyan's reappointment application did not meet the required criteria.

In this regard, Mezbaul Haque, spokesperson of the central bank, told The Business Standard, "We have rejected Golam Sarwar's reappointment considering his overall performance. The central bank considers several factors during such appointments, and in this case, he fell short in certain areas."

At the same time, the central bank asked the company to inform about loan recovery during his (Golam Sarwar) tenure and whether there had been any irregularities in interest waivers.

The tenure of IIDFC MD Golam Sarwar Bhuiyan will end on 31 March. 

The company's board of directors then decided to re-appoint him as the managing director awaiting the central bank's approval. 

Golam Sarwar could not be reached for comment on the non-approval of his reappointment.

IIDFC is a financial institution established by public and private banks and insurance companies.

State-owned institutions --Sonali Bank, Janata Bank, and Investment Corporation of Bangladesh --hold a 23% stake, while 8 private banks, 3 private insurance companies, and former finance secretary Motiul Islam jointly hold the remaining 77%.

As of September 2023, its non-performing loans stood at Tk611 crore, representing 59% of its total loans.

In November last year, the Anti-Corruption Commission filed a case against six people, including the IIDFC vice president, for embezzling Tk1.78 crore.