Heritage

The turnaround artist hounded by employer for suspect deal

dutta

Binay Dutta. ILLUSTRATION | STANSLAUS MANTHI

Having been at the centre of a storm that has lashed Dubai Bank in the three of his four years as managing director, Binay Dutta now finds himself in a fight against his employer.

Mr Dutta, a banker of 30-years standing, is probably at the lowest point of his career after Dubai Bank accused him of fleeing the country to evade possible prosecution over a suspect share sale deal.

The bank claims that it stands to lose about Sh50 million from the transaction, but Mr Dutta has denied the accusations and says his lawyers will respond to the case already filed in court.

The bank claims that Mr Dutta packed his bags and jetted off on the first available flight to India on May 8, the day he was to appear before the board of directors to clarify issues raised in a suspect share sale.

When Dubai Bank boss Hassan Zubeidi hired Mr Dutta, it was in the hope that the Indian national would turn around the lender’s fortunes just as he had done with Oriental Commercial Bank (OCB) in a three-year stint that ended in 2008.

Mr Dutta took over from Nerea Said, who left amid a bitter spat with Mr Zubeidi.

On his personal bio posted on Dubai Bank’s website, Mr Dutta says he joined OCB in 2005 when it held position 41 out of Kenya’s 43 lenders but managed to transform it into a strong lender, leaving it at position 20 in 2008.

Mr Dutta’s first assignment outside India was in Nigeria in 2003, where he joined Indo-Nigerian Bank as general manager.

He would jump ship later that year, opting to take over as MD and acting CEO of Eagle Africa Bank, where he had a brief to transform the struggling lender’s fortunes.

He later left Eagle Africa Bank for Kenya to work for OCB, before he was once again poached by Nigerian-owned UBA Bank as executive director.

The trained geologist’s tenure at Dubai Bank, however, risks damaging the reputation he built over the years as a turnaround artist.

Dubai Bank alleges Mr Dutta only left behind a hand-written request for 25-day leave, but was on a plane to India even before the request was approved.

Mr Dutta currently risks being sent to civil jail for Dubai Bank’s failure to deposit Sh197 million in a Mombasa court where it is engaged in a property battle with real estate firm Kwanza Estates. He was cross-examined in October last year, but he is not yet in the clear as the case is ongoing.

The matter will proceed on June 17 when Mr Zubeidi is expected to be cross-examined.

Back at Dubai Bank, Mr Dutta has carried a heavy load of responsibility. In 2013, the Central Bank of Kenya ordered Dubai Bank to stop salary increments for the lender’s top brass as well as new loan awards over fears the bank’s liquidity was diminishing at an alarming rate.

Mr Dutta has on occasion had to come out to deny claims of theft lodged against the lender, some by insiders working with others in shady deals. While the allegations were made prior to Mr Dutta joining the bank, he has been forced to carry the cross as managing director.

Despite the seemingly difficult period at Dubai Bank, Mr Dutta can, however, take credit for making the institution one of the country’s friendliest lenders, as it currently offers one of the lowest loan interest rates at 12 per cent according to the recently released Central Bank of Kenya data.

Dubai Bank’s current net worth is believed to be in the region of Sh2.92 billion.

Born and raised in India, Mr Dutta graduated with a bachelor of science degree in geology, but opted to join State Bank of India 11 years after graduating. His grasp of the banking industry came through hands-on experience as he would spend the next 23 years learning the ropes.

He left the institution in 1991 after rising to the post of credit appraisal officer. After an eight-year hiatus, he left for Africa to take the appointment in and Indo-Nigerian Bank.

Mr Dutta has a master’s degree from the University of Liverpool in the United Kingdom, where he studied finance, e-banking and strategy. He joined the university in 2003 while still working at Eagle Africa Bank and graduated a year later.