In the realm of Bangladesh’s banking sector, Syed Abu Naser Bakhtiar Ahmed is a name synonymous with integrity, vision, and reform. With over four decades of experience, he has been instrumental in shaping the country’s financial landscape, not just as a banker, but as a transformational leader. Having completed his Masters from Dhaka University’s IBA in 1969, Bakhtiar Ahmed has held top executive positions in both national and international banking institutions. From 2004 to 2010, he served as the Managing Director of Agrani Bank, spearheading significant reforms. In September 2024, amid a banking crisis, he returned as Chairman of Agrani Bank PLC to lead yet another wave of recovery.
In this exclusive conversation, Bakhtiar Ahmed speaks candidly with Raju Alim about the past, present, and future of Bangladesh’s banking sector, economic reforms, and the challenges of reviving trust and stability.
Interview Highlights
Raju Alim : Sir, how are you?
Bakhtiar Ahmed: Alhamdulillah, I’m doing well. I hope you are too.
Raju Alim : We’d like to start with the July Uprising. Many say it marked a turning point, igniting a movement for accountability, especially regarding the widespread looting of banks. As Chairman of Agrani Bank, how do you assess this transformation?
Bakhtiar Ahmed: The banking sector endured 15 years of severe instability. After the uprising, we’ve seen a gradual path to stabilization. The sector had hit rock bottom classified loans soared, and funds were shamelessly laundered abroad. What we once accused 22 families of doing during the East-West Pakistan era, has now multiplied to around 2,200 families have plundered our financial system in the last decade and a half.
This looting was not isolated, it was systemic. Politicians, business groups, directors, even former governors, everyone had a hand. Fake accounts were created to siphon money abroad. Houses were bought in London, cars in Dubai, assets in Singapore. This was grand-scale robbery. The government, however, deserves credit for halting this downward spiral. But halting is not enough we must now rebuild and restructure.
Raju Alim : Some say banks were robbed, some call it looting. What is your direct observation?
Bakhtiar Ahmed: It was both. Bank robberies and looting occurred on a massive scale. Fake accounts, fraudulent loan schemes, money
laundering, all of it happened under the guise of banking products. It wasn’t just isolated groups like S. Alam Group; insiders within banks facilitated this heist. The complicity spanned from top management to regulatory authorities.
Raju Alim: Why did this h
appen? Was it a lack of regulation or political interference?
Bakhtiar Ahmed: It was political interference, blatant and persistent. Directors were appointed based on political favors, not merit. Due diligence was ignored. Loans were disbursed under fake names for so-called mega projects. Corruption, bribes, and ‘speed money’ dictated financial decisions. While this rot began long ago, it became institutionalized in the last 15 years. The common people, the real stakeholders never benefitted. The plunderers did.
Raju Alim : How can we bring back the laundered money?
Bakhtiar Ahmed: First, bilateral agreements between Bangladesh and foreign governments are essential. Only then can we initiate legal proceedings civil suits, money laundering cases to repatriate illicit funds. Transparency is key.
Look at the Bangladesh Bank reserve heist, funds laundered to Sri Lanka were recovered due to existing agreements. But funds that went to Manila are still in limbo because no agreements existed. Legal actions are ongoing in the US, Manila, and Bangladesh, but a proactive approach earlier could’ve mitigated this.
Raju Alim : There’s a perception that investments in state owned banks and Islamic banks are stabilizing them. But questions remain, how much money was siphoned off? How much has been recovered?
Bakhtiar Ahmed: The public deserves answers. The laundered money belongs to the people, yet the perpetrators are still at large. The numbers being circulated over one trillion taka laundered are alarming. Without transparency and accountability, recovery remains a distant hope.
Raju Alim: Let’s focus on Agrani Bank’s current state. How severe is the situation?
Bakhtiar Ahmed: When I left in 2010, Agrani Bank was in a strong position capital adequacy was over 10%, classified loans were down to 11%, and profit stood near BDT 526 crore. Now, after 15 years of mismanagement, the scenario is grim. Classified loans have skyrocketed to 40%, capital adequacy has plunged below 5%, and we’ve become net borrowers.
The hidden losses are staggering. There’s a provision shortfall of BDT 16,000 crore, buried under the deceptive “deferred system”
a malpractice that masks the true financial health of banks. This system benefits shareholders and executives through fake profits and bonuses while the bank bleeds silently. This malpractice must be abolished.
Raju Alim: Given these challenges, how do you envision the future of Bangladesh’s banking and commerce?
Bakhtiar Ahmed: I remain optimistic but realistic. We must shift focus from merely empowering conglomerates to nurturing grassroots entrepreneurs, cottage industries, and micro enterprises. In 2025, Agrani Bank will prioritize existing clients, especially rural women entrepreneurs and small-scale industries, instead of indulging in new mega projects. Sustainable, inclusive growth is the only way forward.
Raju Alim: Digital banking, cashless economy, what’s your perspective?
Bakhtiar Ahmed: A cashless society is ideal, but the groundwork in Bangladesh is far from ready. We must fortify digital infrastructure, cybersecurity, and ensure that rural populations are not left behind. True digitization requires practical steps, not just slogans. I’ve personally experienced cybersecurity breaches, highlighting our vulnerabilities.
Raju Alim: In summary, what is your message regarding the future of the banking sector?
Bakhtiar Ahmed: The future is promising, but only if we act decisively. Financial discipline, transparency, restructuring of banks and NBFIs, supporting the underserved, and abolishing malpractices like the deferred system are critical. Bangladesh’s economic liberation depends on genuine reforms, not cosmetic changes.
Raju Alim: Thank you for your valuable insights.
Bakhtiar Ahmed: I am grateful for the opportunity to speak candidly.
