AB Bank terminates jobs of over 100 executives after pay cuts in pandemic

AB Bank has fired over 100 officials after pay cuts to scale down costs amid the coronavirus crisis.

In letters sent to the employees last Wednesday, Bangladesh’s first private sector bank said their termination would be effective from Sunday.

Chairman Muhammad A (Rumee) Ali asked bdnews24.com to contact Managing Director Tarique Afzal when it reached Ali for comments. Afzal did not respond to requests for comments.

The bank said in the letters that it will pay the sacked employees dues and salaries of three months.

The decision aims at “the bank’s survival in the future as it cannot bear extra expenses”, it said.

The officials will bear responsibilities if they take legal action against the decision, it warned.

Officials said 121 of them received the letters of termination.

Several of the those officials have vented their frustrations at the move. “What will happen to us and our families now amid this pandemic?” asked one of them, who requested anonymity.

He was angry that the sponsors and owners of the bank “plundered tens of billions of takas and laundered the money abroad”.

“And it has now sacked us without taking measures to recover the money,” he said.

AB Bank had earlier announced a 5 percent pay cut for all of its executives in May and June.

More than 2,000 officials and staffers work in the bank, which is in the worst condition among the private banks of the country now.

It tops a list of banks with most loans taken by their own directors. The loans taken by the directors from AB Bank stood at Tk 9.07 billion in January.