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Adil Chowdhury has resigned as Managing Director (MD) of National Bank after serving for just one year, despite being appointed on a three-year contract. His resignation became effective on July 31, and he is expected to join AB Bank as its new Managing Director following approval from Bangladesh Bank.
Sources said around 30 officials recruited by Chowdhury from various banks during the past year are also set to move to AB Bank, with appointment letters already issued.
National Bank Chairperson Prof Melita Mehjabin said the bank will now appoint a new Managing Director who can strengthen customer confidence, focus on recovering defaulted loans and improve the bank's overall financial condition. She added that borrowers who continue to withhold repayments would face appropriate action.
National Bank has remained under financial stress since Bangladesh Bank intervened in 2024, ending the long-standing control of the Sikder Group over its board. Although a new board now oversees the bank, it continues to struggle with the impact of past irregularities and weak loan management.
According to documents presented to the bank's board, interest income from loans fell to Tk 302 crore in the first six months of 2026, down from Tk 460 crore during the same period last year. Investment income also declined sharply to Tk 46 crore from Tk 591 crore.
Meanwhile, interest expenses on customer deposits rose to Tk 2,343 crore, widening the gap between interest income and expenditure. The bank recorded an operating loss of about Tk 1,923 crore, while its net loss for the January–June period increased to approximately Tk 2,294 crore, compared with Tk 992 crore a year earlier.
The bank attributed the decline in income to reduced repayments on rescheduled loans and lower returns from treasury bonds.
According to Bangladesh Bank data, 56.44 percent of National Bank's total loan portfolio is currently classified as defaulted, amounting to nearly Tk 24,000 crore. The bank also faces a provisioning shortfall of around Tk 20,000 crore. After reporting a loss of Tk 1,706 crore in 2024, it has remained in the red this year.
To help ease its financial difficulties, National Bank plans to lease one of its under-construction Twin Tower buildings in Panthapath under a special approval granted by Bangladesh Bank. Bank officials hope the rental income will provide additional financial support.
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