Twenty-six export-oriented ready-made garment manufacturers have called for a comprehensive state investigation and immediate mitigation regarding multi-billion-taka fraudulent loans allegedly opened in their names. The fraudulent credit lines were reportedly created by the Narayanganj branch of Premier Bank PLC. Speaking at a press conference organized at the Economic Reporters’ Forum on Saturday, 16 May 2026, the factory owners revealed that these illicit financial liabilities have pushed multiple production units to the brink of insolvency.
Table of Contents
Timeline and Methodology of the Alleged Irregularities
According to a formal statement read by Arifur Rahman, Managing Director of Dowas Land Apparels, the financial anomalies occurred continuously between 2017 and 2023. This timeframe falls under the tenure of the bank’s former chairman, HBM Iqbal, during the regime of the Awami League-led government.
The affected entrepreneurs asserted that branch officials, operating in direct collusion with senior executives at the head office and the former chairman, created immense financial liabilities without the knowledge or administrative signature of the account holders. The operational steps of the alleged fraud involved:
The fabrication of sales contracts using forged identity documents.
The opening of unauthorized back-to-back Letters of Credit (LCs) despite the complete absence of physical raw material imports.
The inflation of credit lines far beyond permissible regulatory limits. For instance, while a standard transaction allows an LC value of approximately 7.5 million BDT against a 10 million BDT export order, the branch allegedly approved LCs worth up to 75 million BDT for similar figures.
The conversion of these artificial liabilities into forced loans against the companies, adjusted via foreign currency purchases from an entity named Premier Exchange, rather than utilizing legitimate incoming export proceeds.
Statistical Analysis of Affected Businesses and Corporate Discrepancies
The following data sets outline the corporate footprint affected by the Narayanganj branch anomalies and highlight the case of a specific textile unit:
Table 1: Institutional Scope and Workforce Impact
| Metric Description | Verified Statistical Data |
| Total Entities Affected at Narayanganj Branch | 43 Companies |
| Export-Oriented Garment Factories Affected | 26 Factories |
| Total Peak Workforce Employed across Affected Units | 28,000 to 30,000 Workers |
| Total Formal Appeals Submitted to Bangladesh Bank | 22 Letters |
Table 2: Financial Discrepancy Case Study (Total Fashion)
| Financial Parameter | Authorized Corporate Value | Discovered Value (2023) |
| Approved Loan Threshold | 500 million BDT | — |
| Legitimate Utilized Capital | 480 million BDT | — |
| Accumulated Debt Burden via Alleged Fake LCs | — | 3.60 billion BDT |
Regulatory Oversight Failures and Factory Closures
The affected business owners expressed grave concern over how these systematic discrepancies repeatedly evaded detection during routine institutional audits conducted by both the internal audit team of Premier Bank’s head office and the external inspectors of Bangladesh Bank. Despite filing 22 separate complaints with the central bank and securing explicit directives from the High Court, the manufacturers stated that Premier Bank has continually refused to provide itemized statements detailing the exact loan allocation for each affected account.
The financial pressure from these unapproved debts has disrupted supply chains and crippled cash flows, causing multiple factories to shut down operations entirely. The remaining affected units are currently struggling to survive under the burden of artificially inflated liabilities.
Current Investigative and Forensic Response
Following structural changes within the institution, the newly reconstituted board of Premier Bank PLC has initiated extensive accountability measures. A senior official of the bank confirmed to The Financial Express that an external audit firm has been dispatched to perform a special investigation of the Narayanganj branch, with a preliminary report expected by the end of the week. Furthermore, an internal high-level committee has been structured to analyze the operational pipeline of the fraud.
Concurrently, a major international professional services network, Ernst & Young (EY), alongside six domestic audit firms, has been deployed to execute a comprehensive forensic audit of Premier Bank’s entire financial history. In tandem with these corporate inquiries, Bangladesh Bank has formally requested comprehensive documentation regarding the 26 affected garment manufacturing accounts to verify the full extent of the loan manipulation.