Hafiz, who became MP from Bhola on a ruling coalition ticket, was re-elected at the bank's annual general meeting on August 6, 2003 from the private shareholders' quota.

Hafiz became a director of the state-owned bank in 1994 and has been holding the position since then, although the recently revised Bank Company Law stipulates that a director cannot hold the post for more than six years at a stretch.

The central bank in a letter sent yesterday to the chairman and managing director of Rupali Bank questioned the legality of Hafiz's re-election, sources said.

The BB letter asked the Rupali Bank to take up the matter at its next board meeting and inform the central bank of the outcome in a week. The next board meeting is slated for September 15.

Hafiz could not be contacted for comments because he is abroad.

Rupali Bank continues to be a state-owned enterprise despite being floated in the stock exchange as a public limited company in 1986. The state owns 93.65 per cent of its shares, while private shareholders own the rest.