Padma Bank merged with Exim

News desk: Private sector Padma Bank has signed a memorandum of understanding with Exim Bank for the purpose of merger. After the merger, it will operate under the name Exim Bank.

Governor Abdur Rauf Talukder, Exim Bank and BAB Chairman Nazrul Islam Majumder, Padma Bank Chairman and Sonali Bank MD Afzal Karim and senior officials of the three institutions were present at the contract signing ceremony on Monday.

Exim Bank Chairman Nazrul Islam Majumdar said after the agreement, Padma Bank will no longer exist from tomorrow. Due to the merger of the bank, the new operations will be carried out under the name of Exim Bank. No employees will lose their jobs despite the merger. However, the directors of Padma Bank cannot be on the Board of Directors of Exim Bank. No decision has been made regarding the managing directors of the two banks.

He said there was no pressure from the government to merge with Padma Bank, but there was a suggestion from the government. We have done it in the interest of the country, in the interest of the country's economy. Even if Padma is merged, there will be no problem for the depositors, everyone will be safe.

Nazrul Islam Majumder also said that there are two methods of integration in the world. We didn't do acquisitions, we did mergers. A merger between a strong bank and a relatively weak bank. The human resource of Padma Bank which has about 1200 employees will not go to work. All will be working for Exim Bank. There will be no loss to our depositors and shareholders. It will continue as before.

Bangladesh Bank spokesperson Majbaul Haque said that the two banks have agreed to merge. Then they will apply. Bangladesh Bank will audit if their proposal is approved. Then the merger will be approved. Then if a new bank is allowed to start, Padma Bank will be dissolved. Until then, the two banks will continue as usual.

The issue of merger with Padma Bank was decided in the board meeting of Exim Bank last Thursday. The Board of Directors of Padma Bank has also decided on the merger.

In a meeting with a delegation of Bangladesh Association of Banks (BAB) on March 4, the governor said that 7 to 10 weak banks may be merged with strong or good banks within this year. If the weak banks do not merge voluntarily during this period, they will be forced to merge from next year.