A delegation from the Federation of Indian Export Organisations (FIEO), led by its Chairman SK Jain, during their six-day visit to Bangladesh, which concluded yesterday, alleged that Bangladeshi banks were not paying import bills against LCs.

They took up the issue with Finance Minister M Saifur Rahman, Bangladesh Bank governor Dr Salehuddin Ahmed and the country's apex trade-body FBCCI to get wide press coverage. By doing so they damaged the image of the country's banking industry both at home and abroad, a senior banker observed.

The allegations of dishonouring the LCs, amounting to around Rs 100 crore, were raised against three banks -- Shahjalal Islami Bank, Dutch-Bangla Bank and Mutual Trust Bank.

As part of their mission here, the team of traders met the management of Shahjalal Bank on Tuesday and found their allegation against the bank "irrational", said a corporate release yesterday.

"Shahjalal Bank is very rational and we're expressing our sincere regrets if our remarks damaged the image of the bank," SK Jain said, hearing about a false incident of letter of credit (LC) from the management. "Now, we have no complaint against Shahjalal Bank."

Chairman of the bank Sajjatuz Jumma informed the delegation that the so-called LC was not opened and transmitted by the bank--it was an act of forgery.

He further informed that the bank filed a criminal case with the court of chief metropolitan magistrate on March 10 against the forgery.

"We don't understand on what basis the shipment was made," Managing Director M Kamaluddin Chowdhury said, adding that the remarks were nothing but an effort to tarnish the image of the bank.

Dutch-Bangla and Mutual Trust banks in separate statements also explained their positions against similar allegations.