Padma Bank Plc’s merger with Listed Export Import Bank of Bangladesh PLC (Exim Bank) has been retracted.
The board of Exim Bank decided Monday, December 23, not to merge Padma Bank.
At the Exim Bank board meeting on March 14 of this year, the merger of Padma Bank was decided. The bank communicated its decision to regulatory agencies and the two stock exchanges.
In light of the decision made at the board meeting, Exim Bank and Padma Bank signed a memorandum of understanding on March 18 to begin the merger process. The agreement was signed by the managing directors of both banks at the time. The signing ceremony was attended by the governor and deputy governor of Bangladesh Bank, as well as other representatives and chairmen from both banks.
The then Chairman of Exim Bank at the contract signing ceremony. Nazrul Islam Majumdar told reporters that this is a historic decision for the development of the country.
When the condition of the banking sector became fragile due to the 15-year misrule of the previous Awami League government, the regulatory body Bangladesh Bank took the initiative to merge the weak banks that were in crisis of existence with the comparatively strong banks. As part of this, Exim Bank was instructed to merge Padma Bank.
The situation changed rapidly after the fall of the Awami League government in a mass coup. After the new board took charge at Exim Bank, it was hinted that they may not eventually merge Padma Bank. The matter was officially finalized on Monday.
From DSE sources.
