Finance ministry bins Basic Bank's recruitment plan

BASIC Bank, the scam-hit government bank, considers creating more than a thousand new posts in its organogram, but the finance ministry has found the recruitment plan "not feasible", considering its overall state of affairs.

The bank has recently sought 'no objection' from the financial institutions division (FID) to this end but is yet to get the nod of approval from the high-ups.

The bank's board had approved the proposal of expanding the organogram in June 2021. Later, the management forwarded it June last for finance division's go-ahead.

Accordingly, the finance division on July 07 asked the bank to clarify some points mentioned in the proposal.

On July 17, the bank management replied that it wanted to create 1,047 new posts from grade-03 to grade-12.

After getting the approval, it said, the bank wants to recruit manpower when required in the next five years.

According to a senior finance division official, BASIC Bank's financial state and annual performance are not compatible with the proposed recruitment.

"The bank couldn't make any profit since a section of its directors and top officials siphoned off a huge amount of money from it a decade back."

The ministry's high-ups are not willing to give the nod for new appointments, the official added.

When asked, BASIC Bank managing director Anisur Rahman on Monday said new appointments are necessary as the bank has plans to open new branches and sub-branches.

Even the bank's financial condition is improving and its loss came down to Tk 40 million this August from last year's Tk 2.40 billion, he told the FE.

"The bank will turn into a profitable one gradually," said Mr Rahman.

Promotion and new appointments in the bank have remained suspended for long while many existing officials have gone into retirement and more to follow.

The suspension of promotion and fresh appointments is also affecting the bank's annual performance, he cited.

Once a high profit-maker, BASIC Bank was allegedly plundered by some members of its board of directors between 2009 and 2013.

They siphoned off an estimated Tk 45 billion from the bank mainly through granting loans without securing required mortgage. The looting is considered the biggest loan scam in the country's history.

Following the detection of the scam, the Anti-Corruption Commission in 2015 filed 56 cases against the fraudsters.

However, none of the bank's board members were accused in the slew of cases or no action taken against them.