DHAKA: The government didn’t follow existing rules in appointing new chairman and four directors for the state-owned BASIC Bank.

Sources told banglanews that those appointments were given violating section 15/5 of Bank Company (amendment) law.

The law said it is a must to take approval from the Bangladesh Bank, the central bank of the country, to appoint chairman or director of any state-owned bank.

On Monday, after appointing a chairman to the state-owned BASIC Bank on Sunday, the government recruited four new directors to make its board ‘more efficient and professional’.

Bangladesh Krishi Bank's Chairman Alauddin A Majid has been made the new chairman of the BASIC Bank.

The move came after the specialized bank's chairman Sheikh Abdul Hye Bachchu submitted his resignation amid allegations of loan irregularities amounting to Tk 40 billion at three of its branches.

BDST: 1535 HRS, JUL 13, 2014