As many as 29 clients of the Gulshan, Motijheel and Shyampur branches of the Farmers Bank felt embarrassed as their business establishments were named as 'defaulters' by the Bangladesh Bank.      
Mahabubul Haque Chisty, Chairman of the Executive Committee of the Farmers Bank told the daily Observer on Friday that at least 29 clients of the Gulshan, Motijheel and Shyampur branches will go to court as they lost their business reputation due to the central bank.
The High Court issued a stay order for four months against the BB letter that imposed a monetary penalty of Tk 10 lakh on the Farmers Bank for covering up loan-related information.
 "The High Court stayed the central bank's order for four months," Anupam Biswas, a lawyer of the Farmers Bank, told this correspondent on Thursday.  
The HC issued the order in response to a writ petition filed by the Farmers Bank on January 11.  The BB on January 3 sent a letter to the newly-established bank's Managing Director, informing him of the monetary penalty of Tk 10 lakh. The penalty was imposed as per Section 109 (11) of the Bank Company Act 1991, read the BB letter.
According to the Bank Company Act 1991, the BB has the authority to slap fine only on any private bank for irregularities. The central bank did not follow the relevant law correctly, said Chisty.   
In May last year, the BB had ordered the bank to remove its executive committee Chairman Mahabubul Haque Chisty. But the order was later stayed by the High Court.
The BB carried out special inspections in the bank's Gulshan, Motijheel and Shyampur branches between September and November last year. The central bank said that the Farmers Bank had concealed its classified loans to inflate profits and resorted to irregularities in recruitment.  
Chisty said not only the Farmers Bank any bank including the private banks cannot issue classified loans without the approval of the Bangladesh Bank.
The Farmers Bank disbursed loans of Tk 38.26 crore to six companies-EBL Securities, International Securities, Prime Islami Securities, Kazi Equities, BD Securities and Union Capital, according to the BB letter. The bank's monthly outstanding reports said all loans have been adjusted and the bank was satisfied with the clients.