Saturday, 12 July, 2025
Former Janata Bank chairman Dr. Abul Barkat was arrested late Thursday night by the Detective Branch (DB) of Dhaka Metropolitan Police in a raid at the city’s Dhanmondi area. He was detained around 11:30 pm based on a tip-off, DB Joint Commissioner Mohammad Nasirul Islam said.
“Dr. Barkat has been arrested in connection with an ongoing case filed by the Anti-Corruption Commission (ACC). He is being taken to the DB office on Minto Road,” the official added.
Dr. Barkat, a former professor and head of the Economics Department at the University of Dhaka, is known for his vocal support of the previous Sheikh Hasina-led government. However, his tenure as chairman of Janata Bank was marred by allegations of involvement in major loan irregularities and financial scandals. These irregularities are reportedly linked to politically connected business networks that exploited the bank’s lending system.
Janata Bank, one of Bangladesh’s largest state-owned banks, has faced scrutiny over several massive loan scams amounting to billions of taka, which have severely impacted the country’s banking sector. Investigations have revealed that a large portion of these loans were disbursed without proper collateral or due diligence, with some funds allegedly diverted for non-business purposes. These scandals have triggered public outrage and calls for accountability at the highest levels.
Apart from his banking role, Barkat also serves as the honorary chief adviser to the Human Development Research Centre (HDRC), a private research institution.
His arrest is part of the ongoing efforts by the ACC and law enforcement agencies to clamp down on corruption and restore integrity in the financial sector.
Plagued by alleged large-scale lending scams involving major business groups, the state-owned Janata Bank has urgently sought approximately Tk 200 billion in bailout funds as its capital base has fallen into negative territory, sources revealed.
Banking insiders indicated that substantial sums were siphoned off by prominent conglomerates, including Beximco, S Alam Group, and AnonTex, during the previous regime.
The requested bailout package comprises Tk 100 billion for recapitalization from the finance ministry and an additional Tk 100 billion loan support from the central bank, the sources added.
According to available data, Janata Bank faces a capital shortfall estimated at around Tk 340 billion. Meanwhile, its non-performing loans (NPLs) have surged to Tk 605 billion, accounting for 61.39 percent of total outstanding loans, and continue to rise steadily.
A recently completed functional audit revealed that Janata Bank approved an interest waiver facility worth Tk 3,359 crore for the company and reclassified its loans as regular in June 2022. The audit also uncovered forgeries and fraudulent activities linked to principal loans granted more than a decade ago.
According to central bank regulations, loans obtained through irregularities or scams are not eligible for rescheduling or interest waivers.
By categorising the AnonTex loans as regular, Janata Bank effectively reduced its reported defaulted loans artificially. However, it will now be required to reverse this reclassification in compliance with Bangladesh Bank’s directives.
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Former Janata Bank chairman Dr. Abul Barkat was arrested late Thursday night by the Detective Branch (DB) of Dhaka Metropolitan Police in a raid at the city’s Dhanmondi area. He was detained around 11:30 pm based on a tip-off, DB Joint Commissioner Mohammad Nasirul Islam said.
“Dr. Barkat has been arrested in connection with an ongoing case filed by the Anti-Corruption Commission (ACC). He is being taken to the DB office on Minto Road,” the official added.
Dr. Barkat, a former professor and head of the Economics Department at the University of Dhaka, is known for his vocal support of the previous Sheikh Hasina-led government. However, his tenure as chairman of Janata Bank was marred by allegations of involvement in major loan irregularities and financial scandals. These irregularities are reportedly linked to politically connected business networks that exploited the bank’s lending system.
Janata Bank, one of Bangladesh’s largest state-owned banks, has faced scrutiny over several massive loan scams amounting to billions of taka, which have severely impacted the country’s banking sector. Investigations have revealed that a large portion of these loans were disbursed without proper collateral or due diligence, with some funds allegedly diverted for non-business purposes. These scandals have triggered public outrage and calls for accountability at the highest levels.
Apart from his banking role, Barkat also serves as the honorary chief adviser to the Human Development Research Centre (HDRC), a private research institution.
His arrest is part of the ongoing efforts by the ACC and law enforcement agencies to clamp down on corruption and restore integrity in the financial sector.
Plagued by alleged large-scale lending scams involving major business groups, the state-owned Janata Bank has urgently sought approximately Tk 200 billion in bailout funds as its capital base has fallen into negative territory, sources revealed.
Banking insiders indicated that substantial sums were siphoned off by prominent conglomerates, including Beximco, S Alam Group, and AnonTex, during the previous regime.
The requested bailout package comprises Tk 100 billion for recapitalization from the finance ministry and an additional Tk 100 billion loan support from the central bank, the sources added.
According to available data, Janata Bank faces a capital shortfall estimated at around Tk 340 billion. Meanwhile, its non-performing loans (NPLs) have surged to Tk 605 billion, accounting for 61.39 percent of total outstanding loans, and continue to rise steadily.
A recently completed functional audit revealed that Janata Bank approved an interest waiver facility worth Tk 3,359 crore for the company and reclassified its loans as regular in June 2022. The audit also uncovered forgeries and fraudulent activities linked to principal loans granted more than a decade ago.
According to central bank regulations, loans obtained through irregularities or scams are not eligible for rescheduling or interest waivers.
By categorising the AnonTex loans as regular, Janata Bank effectively reduced its reported defaulted loans artificially. However, it will now be required to reverse this reclassification in compliance with Bangladesh Bank’s directives.
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