Chattogram port halts transactions with 9 private banks

 
The Chattogram Port Authority has stopped accepting cheques, pay orders, and bank guarantees from nine struggling private banks.

The directive issued on Thursday instructed all departmental heads, deputy heads, and branch heads to comply with the guidelines.

The affected banks are Global Islami Bank, Union Bank, Bangladesh Commerce Bank, Islami Bank Bangladesh, First Security Islami Bank, Social Islami Bank, Padma Bank, National Bank, and ICB Islamic Bank.

Of these, seven banks are owned by S Alam Group or it cohorts, and one was ruined by rogue financial market operator Chowdhury Nafeez Sarafat. Port Secretary Md Omar Faruk told bdnews24.com that the port has instructed its departments to avoid transactions due to liquidity issues at these banks. Stakeholders at the port have also been informed of the decision, he added.

Officials said the port is facing financial losses due to the failure of these banks to provide interest returns on investments.

Despite being notified, the banks have not responded, which the officials described as a breach of standard banking practices.