EBL denies allegations of loan irregularities, embezzlement

The Eastern Bank Limited (EBL) has denied allegations of loan irregularities and fund embezzlement, a day after one of its customers sought legal action against nearly four dozen senior officials and the bank's chairman in a Chattogram court. 

The court ordered police to investigate the matter, while EBL at a press conference at its head office yesterday accused the customer of "creating unethical pressure" with "a bad intention."

Murtaza Ali, the bank customer, filed an application with the Chattogram court on Wednesday, alleging that top EBL officials had embezzled his bank deposit and its accrued interest. 

However, the commercial lender says that a portion of the deposit, which was kept as collateral, was used to adjust a loan instalment, and the customer was notified accordingly. 

At the press briefing, Barrister Omar Sadat, EBL's legal retainer, said the customer had applied for and was granted a loan against his fixed deposit of around Tk 5 crore.

The loan was disbursed in July 2017 based on his application and the approval letter was sent to his registered address. 

On 28 May 2019, the customer sent a letter to EBL's Chandgaon Branch in Chattogram, acknowledging that he had received the loan, Sadat said. 

Ali failed to repay the instalments later, prompting the bank to remind him via emails and SMS to his registered mobile number. 

In August 2020, the bank liquidated the mortgaged fixed deposit receipt (FDR) to adjust the outstanding loan, following the loan's terms and conditions.

The remaining balance was deposited into his bank account and a loan payment clearance certificate was sent to the client's registered address, said the bank's lawyer. 

However, the customer later denied making this loan acknowledgment. He further alleged that some bank officials embezzled the funds by raising money illegally.

Besides, he claimed that some unauthorised transactions had been conducted in his account without his knowledge. 

According to the lawyer, the bank's directors were not directly involved in that specific ledning or any related incidents, yet their names were included in the case, allegedly to harass them.

The bank will proceed with the next steps as per the court's order, he added. 

Ali Reza Iftekhar, managing director and CEO of EBL, said the bank had conducted two internal investigations and found no wrongdoing. The central bank also investigated the matter and found nothing irregular, he said. 

Moreover, the loan was sanctioned and the funds were transferred through the customer's bank account, with the customer himself initiating the loan request.

"There is no possibility of the loan being sanctioned for any other person," Iftekhar said. 

"His claim is totally illegal," he added. 

Ziaul Karim, head of Communications and External Affairs at EBL, was also present at the press briefing.