Abdul Awal Mintoo takes minister’s chair while retaining bank role

Staff Correspondent

Businessman and BNP leader Abdul Awal Mintu has been given the charge of the Ministry of Environment, Forests and Climate Change in the new cabinet formed under the leadership of BNP Chairman and Prime Minister Tarique Rahman. However, a week after taking charge, he still remains the chairman of the board of directors of the private sector National Bank PLC. The matter has sparked discussion and criticism among those involved in the financial sector.

Some sector stakeholders say that a minister has a policy-making role, which affects various sectors, including the financial and banking sectors. Being the chairman of a commercial bank from that position raises questions of ethics and good governance. They are expressing concern about potential conflicts of interest in the reality that decisions such as government incentives, liquidity support or regulatory policies directly affect the banking sector.

Central bank officials say it is advisable for the person concerned to leave the corporate position immediately after taking up the ministry. This is because the activities of private banks require close coordination with Bangladesh Bank and the Ministry of Finance. In such a situation, if the same person is a cabinet member and chairman of a bank, then questions of transparency and accountability may arise. However, the issue of legal validity will depend on the applicable law, code of conduct and the directives of the Cabinet Division.

In this regard, Bangladesh Bank Executive Director and Spokesperson Arif Hossain Khan said, “He became a minister while he was the chairman. If he joined the chairmanship after becoming a minister, the question of conflict of interest would have arisen directly. However, if he now steps down from the chairmanship, the controversy could end.”

According to the information, Abdul Awal Mintoo took charge as the chairman of the restructured board of directors of the National Bank on August 20, 2024, as per the decision of the central bank. He joined the cabinet within a year and a half. As a result, discussions began on the dual position of running a corporate bank and fulfilling state policymaking responsibilities at the same time.

Experts say that internationally recognized principles require public officials to transparently declare their personal or corporate affiliations and, if necessary, refrain from making relevant decisions. Ensuring transparency is a key consideration in such situations.

Former Director General of Bangladesh Institute of Bank Management Toufiq Ahmed Chowdhury said, “The chairman of a bank may be a professional position, but it may not be considered a source of income. Still, resignation is a good decision if you want to ensure transparency. Even if there are no legal complications, the question of ethics cannot be ignored.”

Meanwhile, the financial condition of National Bank is also under discussion. According to Bangladesh Bank data, the bank’s defaulted loans stood at Tk 32,390 crore as of September this year, which is 75.46 percent of the total loans. The bank incurred a net loss of Tk 1,458 crore during January-September 2025, which is higher than the same period of the previous year.

Bangladesh Bank provided the bank with Tk 6,000 crore to overcome the liquidity crisis. In addition, the institution was given the opportunity to borrow Tk 985 crore from other banks with the guarantee of the central bank. Special facilities were also given for transactions with a current account deficit, amounting to Tk 2,370 crore. In total, National Bank received a total of Tk 9,355 crore from the central bank.

The high rate of non-performing loans has also increased the provision and capital deficit. According to the information received, the bank’s provision deficit stood at Tk 24,282 crore. At the end of September last year, total loans and advances were Tk 42,461 crore, against deposits of Tk 34,91 crore. During January-September 2025, the bank lost Tk 2,907 crore in deposits.

In this context, the issue of holding the position of chairman of the bank while serving as a minister has sparked fresh debate in the political and economic arena. Attempts to contact Abdul Awal Mintu and the bank’s managing director Adil Chowdhury for comment were unsuccessful despite repeated attempts.

Dr. Mustafa K. Mujeri, former executive director of the Institute for Inclusive Finance and Development and former chief economist of Bangladesh Bank, said it is advisable to step down from corporate positions to keep yourself free from controversy after joining the cabinet. In his words, the same criteria should apply to everyone, not just an individual.