A Tk 15.52 billion loan for Orion’s solar power project was nearly approved, circumventing banking regulations such as the single-borrower exposure limit. However, following the recent change in government due to a student-led uprising, the Ministry of Finance’s Financial Institution Division (FID) halted the approval, preventing a potential loan scam. Rupali Bank and Bangladesh Bank attempted to bypass regulations by invoking a special provision of the Bank Company Act to approve the loan. Although the central bank, under its previous governor, supported the loan and sought FID consent, the new government reversed the decision.
The loan, approved by Rupali Bank’s board in May 2024, would have exceeded the single-borrower exposure limit, amounting to 62.49% of the bank’s regulatory capital, far above the 25% legal limit. Including other subsidiaries, the total exposure to Orion Renewables would have been 74.43% of the bank’s capital. The Bangladesh Bank had suggested a temporary waiver of the 25% limit for five years. Critics argue that the Bank Company Act was misused during the previous administration to benefit politically connected borrowers.
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