AB Bank serves legal notice on Aman Feed over dues

AB Bank recently issued a legal notice on Aman Feed because the company has failed to pay the monthly instalments of a loan.

The notice reads that a criminal case will be filed against the company if it fails to repay the outstanding amount within one month.

Aman Feed Chairman Md Rafiqul Islam, Managing Director Md Shafiqul Islam, and Directors Md Toufiqul Islam, Md Tarikul Islam, and Md Robiul Islam have been made respondents in the notice.

Despite repeated attempts to contact Shafiqul Islam and company Secretary Md Monirul Islam for comments, they did not answer any call.

Chief Financial Officer Shankar Kumar Das refused to comment on the issue.

Aman Feed produces poultry feed. It has taken loans worth Tk83.75 crore from AB Bank's Islamic Banking Branch at Kakrail.

AB Bank sources said Aman Feed has not been paying instalments since the end of 2018. However, the company did give a check for Tk31.24 crore after being pressurised by the bank.

But the company did not have the amount in its account, so the cheque was dishonoured.

Seeking anonymity, an official of AB Bank Kakrail branch told The Business Standard that the bank has had good relations with the Aman Group for a long time. Aman Feed is a sister concern of the group, but of late they have been delaying loan repayments.

On this issue, AB Bank Lawyer Tanvir Hossain Khan told The Business Standard, "The legal notice was issued after the cheque was dishonoured several times. We will file a criminal case against them if they do not repay the money within one month."

Aman Feed was listed in the share market in 2015, and has been giving a 20 percent cash dividend and a 10 percent stock dividend to its shareholders. In the financial year 2017-18, its net profit was Tk54 crore, and its reserve was Tk211 crore.

On Tuesday, at the Dhaka Stock Exchange, each share of Aman Feed was sold at Tk35.80, a 1.7 percent increase from the previous day.