Ctg port suspends transactions with 9 banks
On 29 August, Mohammad Abdus Shakur, chief finance and accounts officer of the CPA, issued a letter to all department heads at the port
The Chattogram Port Authority (CPA) has suspended transactions with nine private banks until further notice, without providing specific reasons for the action.
The banks are Global Islami Bank Plc, Union Bank Plc, Bangladesh Commerce Bank Plc, Islami Bank Bangladesh Plc, First Security Islami Bank Plc, Social Islami Bank Plc, Padma Bank Plc, National Bank Plc, and ICB Islami Bank Plc.
On 29 August, Mohammad Abdus Shakur, chief finance and accounts officer of the CPA, issued a letter to all department heads at the port.
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The letter instructed them to refrain from accepting any pay orders, cheques, or bank guarantees from the listed banks until further notice.
Sources within the CPA suggest that the suspension may be linked to ongoing liquidity issues and instability affecting these banks, some of which are associated with the controversial S Alam Group.
Sources said the port is facing financial difficulties stemming from insufficient interest returns on its investments with these banks. Despite sending notices requesting interest payments, there has been no response, which the port authority views as contrary to standard banking practices.
As a result, the port authority feels insecure about keeping its deposits in these problematic banks and is unable to withdraw its funds.
A letter has been sent to the central bank detailing the challenges these issues pose to funding ongoing development projects. Additionally, the concerned ministry has been contacted for assistance in addressing the situation.
