In a move to support the financially distressed National Bank PLC, Bangladesh Bank has granted a special exemption from the provisions of Bank Company Act, allowing lender to commercially lease out its proposed head office building.
As a result of this decision, the bank is permitted to rent out Tower-2 of the under-construction NBL Twin Tower located in Panthapath, Dhaka, until 31 December 2031.
During this period, the provisions of Section 10 of Bank Company Act, 1991 (amended up to 2023) will not be applicable to the bank regarding this commercial leasing.
The central bank issued a circular to this effect on Tuesday. Sources indicate that while the primary infrastructure of the head office has been completed, utility-related works are still ongoing, which has prevented the bank from commencing its operations at the site.
Facing a financial crisis, National Bank PLC applied to the central bank for permission to lease the building for commercial use before occupying it for their own purposes.
In response, the central bank granted this special exemption.
The circular noted that Bangladesh Bank Deputy Governor Md Kabir Ahmed signed the directive, exercising the powers conferred under Section 121 of the act.
