FAS Finance’s board reconstituted for third time

Bangladesh Bank today formed a new board of directors for FAS Finance and Investment Ltd, marking the third reconstitution of the board of the ailing non-bank financial institution in the last four years.

The new five-member board kept unchanged its previous two independent directors, Retired Major General Md Anwarul Islam and Md Mokhlesur Rahman, who were included in the board during its second reconstitution in July this year.

Moreover, Retired Major General Md Anwarul Islam has been made chairman of FAS Finance in the new board.

The other new three independent board members are: Md Abdul Hakim, former executive director of Bangladesh Bank; Md Anwarul Islam, former deputy managing director of Agrani Bank, and Mostafa Kamal Ahmed, an accountant.

The board has been reconstituted as the banking watchdog has recently appointed FAS Finance's chairman, Mohammed Nurul Amin, as the chairman of Global Islami Bank as part of the reconstitution of Global Islami's board.

The new board for FAS has been formed to protect the interest of the depositors and ensure proper management of the company under the Finance Companies Act, 2023, the central bank said in a letter sent to the managing director of the company.

In May of 2021, the Bangladesh Securities and Exchange Commission (BSEC) restructured the board of FAS Finance for the first time by appointing five independent directors.

In July 2024, the commission again restructured the board with the inclusion of Md Kamal Uddin Talukder, a former secretary, and Selim Omrao Khan, a journalist. However, none of them were included in the latest board.

FAS Finance was one of the companies, which were victimised by scams orchestrated by PK Halder, former managing director of NRB Global Bank, which was later renamed Global Islami Bank.

At the end of June this year, total disbursed loans of FAS Finance stood at Tk 1,822.83 crore. Of which, Tk 1,820.89 crore or 99.89 percent became default loans.

As of June this year, the company, which got listed on the stock exchanges in 2008, had a provision shortfall of Tk 549.96 crore, the highest in the sector, as per the BB data.