Bangladesh Bank (BB) has dissolved the existing board of directors of Uttara Finance and Investments Limited and formed a new board to rescue the struggling non-bank financial institution (NBFI) from deep-rooted loan irregularities.
The listed company shared this information through the Dhaka Stock Exchange (DSE) on Thursday (February 5).
Under the Financial Company Act, 2023, the central bank has appointed five new directors to the board. Md. Mukhtar Hossain has been named the new Chairman and will serve as an independent director.
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Other newly appointed independent directors include Mohammad Shafiul Azam, Md. Niamul Kabir, Md. Rafiqul Islam (FCS). Additionally, Md. Mahbub Alam has joined the board as a director.
According to central bank sources, the move aims to ensure transparency and restore corporate governance within the institution.
Uttara Finance has been under scrutiny for failing to publish regular financial reports since 2019. However, an audit report for the year 2020, released on October 6 last year, revealed a staggering financial decline.
After taxes and expenses, the company recorded a net loss of Tk 435.54 crore in 2020. The annual operating loss stood at Tk 108.32 crore. By the end of 2020, the total capital shortfall reached Tk 711.55 crore. This includes a core capital deficit of Tk 59.34 crore and a risk-based capital deficit of Tk 652.21 crore.
Central bank officials hope that the reconstitution of the board will bring positive changes to the management and financial health of the company, which has been reeling from years of mismanagement and unauthorized transactions.
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