Dhaka: Managing director of state-owned Agrani Bank Syed Abdul Hamid has been removed from his post for granting huge loans violating rules.

A letter, signed by Bangladesh Bank Governor Fazle Kabir, containing removal order of the central bank, was sent to the secretary of Banking and Financial Institution Division of the Finance Ministry and the chairman of Agrani Bank board on Thursday morning, reports UNB.

Earlier on Wednesday, Bangladesh Bank decided to remove the managing director of the state-owned bank from his post for his role in loan scam.

According to official sources at Bangladesh Bank, the central bank took the decision at a high-level meeting on Wednesday.

It was alleged that violating the rules, Agrani Bank issued a huge loan in favour of a number of business houses including SunMoon Group and Tanaka Trading.

Against this backdrop, the central bank had earlier issued a show-cause notice to the Agrani Bank managing director.

The Agrani Bank chief replied to the notice, but it was not accepted by the central bank which finally took the decision to remove him.

The Agani Bank MD has been removed just 10 days before the expiry of his service tenure.