A group of garment exporters has accused Premier Bank’s Narayanganj branch of creating nearly Tk10,500 crore in fraudulent liabilities against 26 apparel factories through forged sales contracts and fake back-to-back letters of credit (BTB LCs), raising fresh concerns over governance failures in the banking sector.
The affected exporters alleged that the irregularities took place between 2017 and July 2024 with the involvement of dishonest bank officials.
According to the entrepreneurs, although they never received the loan funds, liabilities ranging from Tk200 crore to Tk850 crore were shown against their companies.
They claimed the total disputed liability has now risen to Tk10,500 crore, citing the latest Bangladesh Bank report.
The allegations were disclosed at a press conference organised at the Economic Reporters’ Forum (ERF) office in Purana Paltan on Saturday by factory owners affected by the alleged fraud.
The factories are members of the Bangladesh Knitwear Manufacturers and Exporters Association (BKMEA) and the Bangladesh Garment Manufacturers and Exporters Association (BGMEA).
Doers Land Apparels Managing Director Arifur Rahman read out a written statement at the briefing. Representatives from several factories, including Total Fashion Managing Director Meherab Bin Hasib and Janani Fashion Managing Director Goutam Poddar, were present.
Arifur alleged that forged sales contracts were created using fake identities without the knowledge of factory owners and that multiple BTB LCs were opened against those documents.
He claimed that although no raw materials were imported, liabilities linked to those LCs were recorded in the customers’ accounts.
According to him, foreign currencies were later purchased at rates Tk12-Tk15 higher per dollar than market prices in the name of settling import payments, enabling large-scale money laundering abroad.
The exporters also alleged that “forced loans” and “demand loans” were subsequently created in their accounts and interest charges imposed on them.
The business owners said Bangladesh Bank regulations allow BTB LCs up to 75 per cent of the net FOB value of the corresponding export LC. However, they alleged that Premier Bank’s Narayanganj branch violated the limit and created excessive liabilities.
Citing his own factories as an example, Arifur said the two factories exported a combined $10.92 million in FY22.
“According to Bangladesh Bank rules, the BTB LC limit should have been around $10 million. But loans worth $60 million were shown against my factories, which has now increased to Tk450 crore,” he said.
He also claimed there were no major abnormal liabilities in their accounts until 2023, but large loan amounts suddenly appeared in 2024, which the entrepreneurs described as fabricated and unjustified.
The exporters alleged that the bank repeatedly failed to provide complete account statements despite multiple requests. In some cases, they said, money loan cases were filed using blank cheques.
They also claimed they were pressured to sign loan rescheduling agreements under threats of suspension of LC and loan facilities.
Arifur further alleged that the pressure contributed to the deaths of two entrepreneurs.
He said Total Fashion Managing Director Md Hasibuddin Mia was called 37 times in a single day on 23 December 2024 and pressured to sign a rescheduling agreement. He later died of a heart attack on 27 December.
He also claimed that West Apparel Managing Director Asif Hasan Mahmud died on 12 September 2025, while Janani Fashion Managing Director Goutam Poddar suffered a stroke and became paralysed.
According to the entrepreneurs, several factories have already shut down because of the disputed liabilities, while many others remain at risk, threatening the jobs of around 25,000 workers.
“If business operations collapse, there will be no way to repay any liabilities. So the actual liabilities should be determined and factories should be allowed to continue operations,” Arifur said.
The exporters demanded an impartial high-level investigation by Bangladesh Bank, the finance ministry and other authorities, along with a forensic audit by an internationally reputed audit firm.
They said a written complaint had already been submitted to the Bangladesh Bank governor on 6 April.
The entrepreneurs warned that failure to resolve the issue quickly could trigger a major crisis in the country’s key export sector and put thousands of jobs at risk.
