Initially, it is the general stock investors who might be at the receiving end of the process while the loan defaulters, whose misdeeds are largely responsible for Padma Bank’s current misfortunes, might come out victorious.
Both banks are weak as per a Bangladesh Bank health index of banks and it is very difficult to get any positive result by merging two weak banks, said Fahmida Khatun, executive director of the Centre for Policy Dialogue.
The planned merger of Shariah-based Exim Bank and struggling Padma Bank is likely to take between 18 months to two-and-a-half years to complete, according to central bank officials.
The MoU will open the process of merger
The news that Shariah-based Exim Bank is going to merge with troubled commercial lender Padma Bank has taken the financial sector of Bangladesh by surprise.
Padma Bank, which has been struggling with the burden of toxic loans for years, will merge with EXIM Bank. It will be the first bank merger in Bangladesh
The investment (overdrawn) facility will facilitate the execution of inward remittance on time, said the bank in a filing on the Dhaka Stock Exchange.
The bank reported consolidated earnings per share of Tk 2.57 for the last financial year compared to Tk 1.49 in 2021.
Dhaka and New Delhi are going to take some fresh measures, including formation of a joint monitoring committee, to quickly
Initially, it is the general stock investors who might be at the receiving end of the process while the loan defaulters, whose misdeeds are largely responsible for Padma Bank’s current misfortunes, might come out victorious.
Both banks are weak as per a Bangladesh Bank health index of banks and it is very difficult to get any positive result by merging two weak banks, said Fahmida Khatun, executive director of the Centre for Policy Dialogue.
The planned merger of Shariah-based Exim Bank and struggling Padma Bank is likely to take between 18 months to two-and-a-half years to complete, according to central bank officials.
The MoU will open the process of merger
The news that Shariah-based Exim Bank is going to merge with troubled commercial lender Padma Bank has taken the financial sector of Bangladesh by surprise.
Padma Bank, which has been struggling with the burden of toxic loans for years, will merge with EXIM Bank. It will be the first bank merger in Bangladesh
The investment (overdrawn) facility will facilitate the execution of inward remittance on time, said the bank in a filing on the Dhaka Stock Exchange.
The bank reported consolidated earnings per share of Tk 2.57 for the last financial year compared to Tk 1.49 in 2021.
Dhaka and New Delhi are going to take some fresh measures, including formation of a joint monitoring committee, to quickly