Staff Reporter :
The Bangladesh Bank (BB) has received five merger proposals from banks and now plans not to receive any more applications for the time being before the completion of the initial bids.
The central bank’s spokesperson, Mezbaul Haque, said on Monday that the banks set for merger in the immediate future include Rajshahi Krishi Development Bank, Bangladesh Development Bank Limited (BDBL), BASIC Bank Limited, Padma Bank, and National Bank Limited.
However, beyond these institutions, no concrete decisions have been made yet regarding further mergers right now, but negotiations are going on regarding potential future consolidation, he informed.
Earlier on March 12 this year, the spokesperson confirmed in a press conference that banks can merge voluntarily until December this year; otherwise, the central bank will take the decisions for mergers based on performance.
In line with the consolidation efforts, Bangladesh Bank has also issued regulations governing bank mergers.
Banks deemed to be in a weak or precarious financial condition will be compelled to merge if they fail to do so voluntarily in accordance with the central bank’s policies.
Under the current proposals, state-run Sonali Bank wants to acquire Bangladesh Development Bank Ltd. (BDBL), and Bangladesh Krishi Bank (BKB) wants to take over Rajshahi Krishi Unnayan Bank (Rakub).
Likewise, private commercial bank City Bank wants to acquire state-run BASIC Bank, while United Commercial Bank plans to buy problematic National Bank, and Shariah-based Exim Bank wants to absorb scam-hit Padma Bank.
BB Executive Director and Spokesperson Md. Mezbaul Haque also highlighted that the managing directors and chairmen of the respective banks had verbally informed the central bank about the planned merger.
