Staff Correspondent:

Bangladesh Bank took an initiative to build a hospital, funded by various banks, at the request of Bankers’ Club of Bangladesh. To implement the initiative, a foundation was set up and it received Tk 680 million, but the initiative has stalled following the change in government in August 2024.

According to bankers and sources concerned, the CEOs of all banks in the country had agreed to finance the bankers’ hospital project initiated by Bangladesh Bank. A foundation called ‘Bankers’ Foundation’ was formed.

Eight public and private banks deposited Tk 680 into the foundation in April- June last year, following a central bank’s letter. The initiative was undertaken to provide healthcare services to bank officials, employees, directors, and their family members, but the initiative did not progress after the fall of the Awami League government in August last year.

Other banks made no deposit either; thus, the deposited funds remain idle in bank accounts.

Sources at the Bangladesh Bank said four central bank officials were tasked with managing the Bankers’ Foundation fund. Three of them have since been removed from their responsibilities, raising questions about whether the hospital project will proceed at all.

It has been learned that a decision was taken at a meeting of banks CEOs on 16 June 2022 with then central bank governor Fazle Kabir in the chair to build a modern hospital with financing from the banks. Then the Bankers’ Foundation was officially registered.

Later on 16 August 2023, it was decided at a meeting chaired by governor Abdur Rouf Talukder that, first, second, and third-generation banks would contribute Tk 100 million each, while fourth-generation and later banks would contribute Tk 40 million each.

Bangladesh Bank sent letters to each bank on 20 March 2023, specifying the contribution amount and account details. In total, Tk 5.32 billion was expected to be raised, and the fund was supposed to be used for land acquisition and infrastructure development.

When the central bank set the contribution amount, several banks, including Islami Bank, were facing liquidity crises.

An account was opened in the name of the Bankers’ Foundation at Agrani Bank. Bangladesh Bank deputy governor Nurun Nahar was appointed as the head of the Foundation, while authorised signatories of the account were former deputy governor and advisor of Bangladesh Bank Abu Farah Md Nasser, Sonali Bank managing director (MD) Afzal Karim, Islami Bank MD Mohammed Monirul Moula, , and Eastern Bank MD Ali Reza Iftekhar.

Following the change in government, central bank officials forced Abu Farah Md Nasser to resign the next day. The government also removed the Sonali Bank MD and placed the Islami Bank MD on leave. Governor Abdur Rouf Talukder also fled the country.

It has been learned from the Agrani Bank that City Bank was the first to deposit Tk 100,000 into the Bankers’ Foundation account in December 2023, to cover expenses to set up the foundation.

United Commercial Bank, EXIM Bank, Dutch-Bangla Bank, Al-Arafah Islami Bank, First Security Islami Bank, and Sonali Bank each deposited Tk 100 million in April- June 2024.

Premier Bank and NRB Commercial Bank deposited Tk 40 million each, bringing the total to Tk 680 million. No money has been spent yet.

Sources said that people concerned initially sought land in Gulshan for the hospital. As no suitable location was found, the land was sought in the 100 Feet Road area. Even discussions were held with several land sellers, but all processes stopped after the change in government.

Officials concerned at Bangladesh Bank said that banks underwent major reforms following the change in government. That is why the hospital project has yet not been presented to the new governor Ahsan H. Mansur. Since there has been no follow-up, other banks have not yet contributed to the fund. However, most banks want to contribute to the hospital initiative.

However, Salim RF Hossain, chairman of Association of Bankers, Bangladesh (ABB) and former MD of BRAC Bank,  “This was somewhat imposed forcefully, and bank entrepreneurs opposed it. I do not think the hospital will be built. So, those who deposited funds should get their money back.”

“The concept of a bankers’ hospital is not pragmatic,” he added.