Nassa Group Chairman Nazrul Islam Majumder had Tk 261 crore in interest waived on a loan from Janata Bank, allegedly using his political connections.
This waiver, on a loan of Tk 156 crore, allowed Majumder to avoid paying any interest. As a result, the total loan amount, which had ballooned to Tk 417 crore with interest, was drastically reduced by the waiver.
Investigation by Bangladesh Bank uncovered that the interest waiver was granted in violation of standard banking regulations. Notably, none of the seven permissible reasons for waiving interest applied to Majumder’s case. Despite this, all types of interest—both charged and uncharged—were forgiven.
Sources claim both Janata Bank and Bangladesh Bank were compelled to grant the waiver due to political pressure.
Majumder, a dominant figure in the banking sector, has held the influential position of Chairman of the Bangladesh Association of Bankers (BAB) for the past 15 years. According to several private bank chairmen, Majumder’s power in the sector is unparalleled. “He’s an undeclared mafia in the banking sector. No one could oppose him because of his closeness to former Prime Minister Sheikh Hasina,” one chairman said.
Majumder is also accused of collecting massive donations from various banks for former Prime Minister Hasina’s relief fund. Reports suggest he solicited Tk 2-3 crore from smaller banks, Tk 4-6 crore from mid-tier banks, and up to Tk 20 crore from larger banks annually.
He is also alleged to have profited from the inter-bank football tournament, charging an entry fee of Tk 25 lakh per participating bank.
Many in the banking industry felt trapped under Majumder’s influence. All the bank chairmen were effectively hostages. No one dared to speak against him, said several chairmen.