A portfolio manager at City Bank, one of Bangladesh’s leading private commercial banks, has been accused of misappropriating company shares for personal gain. The Bangladesh Securities and Exchange Commission (BSEC) launched an investigation in June this year after detecting irregular trading activity.
The investigation revealed that not only the portfolio manager but also the bank’s Head of Treasury and three Deputy Managing Directors (DMDs) benefited from these suspicious transactions. However, the bank claims its top officials were unaware of the wrongdoing and had simply handed over funds to the portfolio manager for investment purposes.
According to the findings, Md. Sanowar Khan, Vice President of the bank’s Corporate Strategic Business Management Division, purchased 1 million units of Capitec Grameen Bank Growth Fund shares from the bank’s BO (Beneficiary Owner) account to his personal account at BDT 13.80 per unit, while the market price was BDT 15.60. He later sold the shares at market rate, making a profit of around BDT 1.8 million (18 lakh), causing financial loss to the bank. He used similar tactics through another personal account and his wife’s BO account.
The report further states that Sanowar Khan and his wife also made illicit profits from trading shares of ADN Telecom, Taufika Foods & Lovello Ice Cream, and BD Paints. Following the exposure, BSEC officially began its investigation on June 3. Later, on July 9, the commission sent a letter to the bank’s Head of Treasury seeking clarification on the actions taken against these trades and the bank’s internal investment policy.
Upon concluding the investigation, BSEC found that the Head of Treasury and at least two DMDs also profited from these irregular transactions. The commission’s inquiry team submitted their observations to the bank and sought an official response last month.
Senior bank officials claim that Sanowar Khan bears full responsibility, and insist that the Head of Treasury and the DMDs were unaware of the trading details — stating they had only provided funds for investment. They also said that appropriate action has already been taken against the accused official.
