Agrani Bank, with conditional approval from Bangladesh Bank (BB), has rescheduled a major loan for Orion Pharma, despite breaching regulations on collateral and single-borrower limits. Orion Pharma, part of the Orion Group, had a collateral shortfall of Tk 5.47 billion against an outstanding loan of Tk 10.39 billion as of April 2024. Although Agrani Bank’s rescheduling request violated the Memorandum of Understanding (MoU) with BB, the loan was extended for six years due to public health considerations. The rescheduling was approved despite the loan becoming classified and the borrower’s failure to meet required conditions. BB has mandated that the collateral shortfall be covered by March 2025 and that progress be reported quarterly. Agrani Bank defended the rescheduling, citing pressure from Abu Dhabi Islamic Bank to settle liabilities and a commitment from Orion Pharma to resolve the collateral issues once the project is operational.
Source for more details:
