B Mirror Report: Eastern Bank PLC has issued a detailed clarification regarding its loan dispute with SS Steel Limited, rejecting a previously published report as “false, distorted, and misleading.”
The bank stated that SS Steel availed loan facilities worth Tk 108 crore in 2023 against various securities and personal guarantees. However, the company allegedly failed to repay installments regularly despite repeated reminders, follow-ups, and legal notices.
Due to continued default, Eastern Bank issued a show-cause notice on November 27, 2024, asking why SS Steel should not be declared a willful defaulter under Bangladesh Bank guidelines. After reviewing the response, the bank classified SS Steel as a willful defaulter on January 19, 2025.
The company later appealed the decision to Bangladesh Bank. Following hearings, the central bank’s appeal board upheld Eastern Bank’s decision on July 17, 2025, making the classification final.
Eastern Bank subsequently filed a money loan case with the 3rd Artha Rin Adalat in Dhaka on November 28, 2024, seeking to recover Tk 103.15 crore. During the proceedings, the bank applied to attach a residential property owned by the company’s chairman in Banani. The court approved the attachment on March 16, 2025, and later delivered a verdict in favor of the bank on May 19, 2025.
As SS Steel failed to comply with the court’s order, Eastern Bank initiated execution proceedings on August 25, 2025, to recover Tk 112.41 crore. The court then issued auction notices in national newspapers in November 2025 to sell the attached assets.
Challenging the auction, a director of SS Steel filed a writ petition with the High Court. On November 30, 2025, the court issued a rule, temporarily staying the auction for three months and directing repayment of the outstanding dues in four equal installments within 12 months.
According to Eastern Bank, the petitioner has failed to comply with the High Court’s directive and has not made any payments so far. The bank has appointed legal counsel and filed an application seeking dismissal of the rule and withdrawal of the stay order, which is currently awaiting hearing.
Eastern Bank maintained that all actions taken were in accordance with applicable laws and regulatory guidelines.
