Nazrul Islam Mazumder, the self-proclaimed patriarch of the banking sector, brought the normal operations of private banks to a halt during the tenure of ousted Prime Minister Sheikh Hasina. Starting from 2009, following the Awami League's rise to power, Mazumder allegedly misused his authority. As Chairman of the Bangladesh Association of Banks (BAB), he was accused of repeatedly pressuring banks to donate to Sheikh Hasina's relief fund.
Mazumder also played a pivotal role in collecting cash or items like blankets from banks under their Corporate Social Responsibility (CSR) programs, which are typically allocated for education, healthcare, and social welfare projects. However, many banks were allegedly forced into diverting these funds toward programs linked to the Prime Minister and her family members.
It has been reported that Mazumder funneled CSR funds into political activities associated with the ruling Awami League, leading many to label him an abuser of power. Notably, BAB collected Tk5.5 crore from private banks to organize the controversial Sheikh Hasina Interbank Football Tournament 2024. Similarly, in 2023, large sums from CSR funds were used for the same tournament, as well as for other events like the Sheikh Russell National Children’s Council and the Sheikh Kamal Youth Games. He also reportedly forced banks to contribute to these initiatives.
Senior executives from two private commercial banks confirmed that Mazumder pressured them not only for football tournament funds but also for one month’s salary from every employee, from MDs to office staff, to ensure the tournament's success. According to them, most banks could not meet their educational and healthcare CSR obligations because the majority of their CSR funds were used for tournaments, the Prime Minister’s Relief Fund, and other Awami League-related activities.
Former Chairman of the Association of Bankers Bangladesh (ABB), Anis A Khan, remarked that donations should be limited and directed toward health, education, and socioeconomic development. Another senior banker, Mahmood Hossain, called this process of using CSR funds "undemocratic" and rejected the forced contributions outright, saying it impeded good governance in the banking system.
Former MD and CEO of Bank Asia, NRB Bank, and National Bank, Hossain added that decisions regarding donations should follow a democratic process. Many senior bank executives were reportedly forced to donate to the Prime Minister’s Relief Fund, football tournaments, and housing projects under the Prime Minister’s Office. Hossain explained that donations should be charitable, but when forced, they lose their true value and reduce banks' profits, thereby affecting shareholders' dividend income.
A senior official at Bangladesh Bank stated that the central bank supervises CSR programs implemented by all scheduled banks through its Sustainable Finance Department. They will take further steps in line with reports from the department.
Mazumder has led the BAB since 2008 and is credited with capping interest rates on loans and deposits to benefit politically connected businessmen. Economists claim that his actions severely disrupted market-driven interest rates, significantly damaging the country's economy in recent years.
In 2021, Mazumder reportedly used political influence to waive interest on loans amounting to Tk261 crore from Janata Bank. According to bankers, at the bank's 654th board meeting, interest waivers were approved for two companies under Nasa Group—Nasa Taipei Spinners and Nasa Spinners. Previously, in 2008, Janata Bank had acquired Tk120 crore in loans for these companies from Southeast Bank and Islami Bank.
Despite efforts to contact Mazumder for comment, no response was received.
BDST: 1245 HRS, SEP 06, 2024
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