Siblings as Chairpersons: Non-Performing Loans Rise at Two Private Banks

Reports indicate that non-performing loans (NPLs) have increased at Meghna Bank and Midland Bank after siblings from the same family assumed the role of chairperson at both institutions. Uzma Chowdhury, Chairperson of Meghna Bank, and Ahsan Khan Chowdhury, Chairperson of Midland Bank, are siblings; both are associated with the PRAN-RFL Group.

Uzma Chowdhury was one of the founding entrepreneurs of Meghna Bank in 2013. Subsequently, Bangladesh Bank restructured the bank's board of directors. Uzma Chowdhury assumed the role of chairperson on March 16, 2025. Prior to her taking charge, the bank's NPLs stood at Tk 255 crore, representing 3.78 percent of total loans. By the end of June this year, that figure had risen to Tk 433 crore, or 5.60 percent of total loans.

Similarly, Ahsan Khan Chowdhury was a founding entrepreneur of Midland Bank in 2013. He was elected chairperson during the 165th meeting of the bank's board of directors on March 20, 2025. Before he assumed the role, the bank's NPLs amounted to Tk 239 crore, or 3.78 percent of total loans. By the end of June this year, NPLs had increased to Tk 412 crore, representing 5.67 percent of total loans.

The report states that attempts to contact Meghna Bank Chairperson Uzma Chowdhury and Managing Director Syed Mizanur Rahman for comments were unsuccessful. Likewise, it was not possible to reach Midland Bank Chairperson Ahsan Khan Chowdhury and Managing Director Imtiaz U. Ahmed.

Citing banking sector sources, the report further notes that this is the first instance in the country where two members of the same family have become chairpersons of two scheduled commercial banks. Observers remarked that a trend of rising non-performing loans has previously been observed in banks subject to family influence or control.