The New Nation - Internet Edition

for loan default

Staff Reporter

Bangladesh Bank has removed two directors of City Bank Ltd for Tk 14 crore loan default.

They are-Deen Mohammad, also the Chairman of Phoenix Group of Industries, and his son Mohammad Shoeb, vice-chairman of Phoenix Finance and Investment Limited (former Phoenix Leasing Company Limited).

Deen Mohammad's Phoenix Group of Industries is associated with Phoenix Textile Mills Ltd., Phoenix Spinning Mills Ltd., Phoenix Fabrics Ltd. and Eastern Dyeing &Calendaring Works Ltd. He is also the founder Chairman of The City Bank Ltd., Phoenix Insurance Co. Ltd and the Apollo Group of Industries.

Mohammad Shoeb is also one of the sponsor Directors of the Phoenix Group of Industries. In addition, he is the Director of Phoenix Textile Mills Ltd., Phoenix Spinning Mills Ltd. and Phoenix Fabrics Ltd. He is also the Chairman of Phoenix Insurance Company Ltd.

The City Bank sources said they took a loan of Tk 20 crore from IFIC Bank Ltd for their company Apollo Ishpat Ltd. Of the amount, they paid Tk 6 crore only.

Bangladesh Bank issued a show-cause notice in August, asking the two to repay the rest of the money within two months. But they failed to do so. They were removed on Wednesday.