BB tightens grip on Uttara Finance with associate administrator

Bangladesh Bank has tightened its grip on troubled Uttara Finance and Investments Ltd by appointing an associate administrator, as the non-bank financial institution remains under direct central bank control over longstanding financial and governance irregularities.

Dr Md Mahfuzur Rahman Bosunia, a joint director of Bangladesh Bank’s ICT Department, was appointed associate administrator on Tuesday, according to a disclosure made by Uttara Finance to the Dhaka Stock Exchange.

The appointment comes nearly seven weeks after the central bank took direct control of the NBFI and installed a four-member administrator team following the dissolution of its board.

The existing team is headed by Bangladesh Bank Director Md Mostaqur Rahman, with Additional Directors Md Mokaddesul Alam and Md Mosharraf Hossain and Joint Director Bimal Kumar Gain serving as members.

The team assumed responsibility on August 19 after Bangladesh Bank dissolved the board amid mounting concerns over the company’s financial condition, governance and past irregularities.

With the latest appointment, the central bank has expanded the administrative structure overseeing Uttara Finance. However, Bangladesh Bank has not publicly specified the particular responsibilities assigned to Bosunia.

His appointment from the ICT Department does not, therefore, necessarily mean that he has been tasked with investigating the company’s IT systems or digital records.

The latest move comes against the backdrop of a deepening financial and governance crisis at Uttara Finance. The company has yet to publish its financial statements for 2022, 2023, 2024 and 2025, according to reports following the central bank’s intervention.

The crisis escalated in August when Uttara Finance’s chairman, managing director and two independent directors resigned simultaneously. The resignations prompted Bangladesh Bank to dissolve the board and assume direct administrative control under the Financial Companies Act, 2023.

The latest intervention is not the first time the central bank has stepped in at the company.

Bangladesh Bank had previously dissolved Uttara Finance’s board in 2022 over allegations of serious irregularities, including the alleged use of depositors’ money for personal purposes instead of depositing the funds into the company’s accounts.

The company has also faced questions over the reliability of its financial reporting. A previous special audit reportedly uncovered major irregularities, while its reported 2019 profit of Tk118 crore was subsequently revised to a loss of Tk310 crore.

The August resignations involved Chairman and former NRBC Bank Managing Director Md Mukhtar Hossain, independent director and former Bangladesh Bank Executive Director Md Niamul Kabir, independent director Md Rafiqul Islam FCS and Managing Director Md Wali Ullah.

The central bank had earlier attempted to restore governance at the institution. In February this year, it reconstituted Uttara Finance’s board with five members�"four independent directors and the chief financial officer of Uttara Group.

The appointment of an associate administrator now marks another step towards bringing Uttara Finance’s operations, financial reporting and governance under closer scrutiny.

For Bangladesh Bank, the immediate challenge is to establish the true financial position of the troubled NBFI, strengthen internal controls and determine the extent of liabilities and irregularities accumulated over the years.

The expanded administrator structure signals that the central bank’s direct oversight of Uttara Finance is likely to continue as it works to restore discipline and bring greater transparency to the institution.