A Bangladesh Bank report has revealed that BRAC Bank PLC has allegedly dismissed over 2,500 employees in the past three years, with many reportedly forced to resign.
The BB found instances of bias, misuse of authority and arbitrary actions by senior officials in forcing resignations or terminating subordinates.
On February 25, a special inspection was conducted at BRAC Bank鈥檚 head office by a Bangladesh Bank team to investigate these allegations.
The bank鈥檚 records show that 2,553 employees exited the bank during this period, with 95 per cent, or 2,418, categorised as voluntary resignations.
However, the bank鈥檚 history suggests that many of these so-called voluntary resignations were, in fact, forced, the report said.
The report noted that a significant number of complaints were received, indicating that employees were pressured to resign under threat of termination.
In detail, BRAC Bank terminated 720 employees in 2021, 998 in 2022, 835 in 2023 and 115 in 2024 for various reasons.
However, the inspection revealed inconsistencies in the bank鈥檚 performance appraisal system.
Top-performing employees, who had consistently been rated as such for four consecutive years, were suddenly deemed non-performers for just one year and subsequently terminated 鈥� an action the report described as unacceptable.
Furthermore, these terminations were carried out without the approval of the board of directors.
The report also criticised the bank鈥檚 management for implementing varying performance evaluation methods across different divisions, such as retail, SME and cards, without board approval.
This lack of a unified evaluation system, coupled with the discretionary power given to divisional heads, has raised concerns about potential personal biases influencing the appraisal process.
The presence of separate evaluation systems has disrupted the bank鈥檚 overall human resource management, rendering it chaotic and ineffective.
Former employees reported being forced to resign and threatened with termination if they refused. The bank鈥檚 termination statistics support these allegations, with many employees resigning out of fear that termination would hinder their future employment prospects.
Ekram Kabir, BRAC Bank鈥檚 head of communication and public relations, talking to 抖阴精品, denied the Bangladesh Bank inspection report鈥檚 allegations, claiming that the bank had terminated approximately 460 employees over the past five years, primarily from sales or target-oriented divisions, due to poor performance or disciplinary issues.
He also mentioned that despite adequate training, some employees failed to perform, while others were found involved in fraud, theft or female harassment, leading to their dismissal.
Regarding the violation of a Bangladesh Bank circular, the inspection found that BRAC Bank kept 1,548 employees in the same branch or department for more than three years, with some remaining in the same division for as long as 19 years.
When asked for clarification, the bank stated that specialised work at the head office required expert officers.
However, when the inspection team reviewed the appointment documents of 28 randomly selected officers, the bank failed to provide evidence that these employees were hired as specialists.
The report concluded that the bank was reluctant to comply with the circular鈥檚 provisions.
One specific case highlighted in the report involved the dismissal of ABM Siddiq, who was accused of forgery in a loan application.
The bank鈥檚 head of investigation, Mohammad Hafizul Islam, who has been working in the same department for over 15 years, verbally assigned an officer from the same department, Kashfia Ashfaq, to conduct the investigation, despite lacking formal approval for her appointment.
The investigation report, which led to Siddiq鈥檚 termination, did not unequivocally prove the allegations against him.
The inspection report suggested that senior officials who have remained in the same department for extended periods have exhibited authority and arbitrariness in the forced resignations or terminations of subordinates.
The report directed BRAC Bank to reinvestigate the matter and take appropriate action against Hafizul Islam, the head of investigation, for his arbitrary conduct. However, the bank has failed to comply with these directives.
