Announcement

Former Board Chair Signs Consent Order Over Unsafe Banking Practices

Faces Strict Requirements For Future Banking Roles

Keith Griffin

August 5, 2020

Anil Bansal, the former chairman of the board of directors for the former Indus American Bank in Edison, New Jersey, entered into a consent with the Federal Deposit Insurance Corporation for unsafe and unsound banking practices. Indus is now part of BCB Bank.

Anil Bansal, former board chair, Indus American Bank

In the consent order, the FDIC determined that between Dec. 12, 2014, and April 9, 2015, while board chairman, Bansal and an “institution-affiliated party,” engaged in unsafe and unsound banking practices by finalizing the purchase of real property located in Edison, New Jersey for $1.95 million on behalf of the bank without obtaining the prior written approval of the bank’s board, and falsely completing a board resolution claiming that a special board meeting had been convened authorizing him to effectuate the purchase of the property. On Sept. 13, 2016, Bansal resigned from his position as chairman.

Bansal can return to banking but only under certain conditions. He has to attend 40 hours of training, 32 of which have to be in corporate governance and eight hours in ethics. He needs to start the classes 90 days before assuming any role and complete it 90 days after starting.

Prior to accepting any position that would cause Bansal to become an institution-affiliated party of an insured depository institution he must provide the regional director of the FDIC’s New York Regional Office with 15 days prior written notice that he has been offered such a position and intends to accept the offer.

Bansal also has to ensure that the chairman of the board of directors of the institution; or a senior management official of the institution receives a copy of the consent order.

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