Photo: Messenger
The depositors of Padma Bank are thronging various branches to withdraw money as the news of the merger has panicked them, but many of them are facing problems with the withdrawal.
Many customers said their withdrawal requests were not processed and the bank could not give them the money they wanted to withdraw. The bank even returned cheques of Tk 50,000, and officials requested clients to withdraw money after a week.
Customers started withdrawing funds on the day the merger agreement was signed, and the rush was visible till Thursday.
Since morning, the bank’s Motijheel branch in the capital saw the presence of a large number of depositors on Thursday. The rush was slightly higher than usual. Withdrawal requests involving small amounts were processed immediately, but the clients requesting large amounts were asked to come later.
Sabbir Hossain, an engineer who came to withdraw money, told The Daily Messenger, “The bank immediately gave me the money I wanted to withdraw because the amount is small."
However, another customer said he wanted to withdraw Tk 5 lakh and was asked to come two days later. Doctor couple Hosni Mubarak and Saida Mubarak said their cheque was returned and they were asked to come a week later.
Nuruzzaman, an employee of a private company, said he had Tk 50,000 in his account and wanted to withdraw that. “But they said they could not give me the money today and asked me to come on Monday.”
Many customers also came to inquire about what would happen after the merger. A client named Roni Chowdhury said, “I have been doing transactions through Padma Bank for a long time. I came to inquire after hearing the news of the merger. They assured me there would be no problem.”
Another client Saiful Islam said he has a three-year fixed deposit, which has matured. “But they did not give me the money today and asked me to come after a week,” he said.
“Against the backdrop of the merger, I am now worried about whether I will get the money or not. However, the branch manager said they will give me the money after a week,” he added.
Customer Imranul Islam told The Daily Messenger there would be some fear among clients if they deposit money in a bank. “But since Padma Bank is merging with Exim Bank, it may not be a problem. Let us see what happens.”
Meanwhile, the pressure on the bank’s officials to handle clients has increased due to the sudden rise in the number of depositors making withdrawal requests. Head of the Motijheel branch Monir Hossain told The Daily Messenger, “The pressure is 50 per cent more than what we usually face. Many clients came to withdraw money before their deposits matured.”
He said clients were worried about whether they would get their money back or not, which is normal. “We understand their concerns and are trying to convince them. Many of them are convinced, but many are not. The same situation has been reported in several other branches.”
Managing Director and Chief Executive Officer of Padma Bank Tarek Reaz Khan told The Daily Messenger many customers are withdrawing money because this type of merger has not happened before in the country.
“But there is no reason to panic because Exim Bank is much stronger than Padma Bank. There is no possibility that depositors are at risk.”
He also said Padma Bank had collected deposits at high interest due to the liquidity crisis but the Exim Bank rates are slightly lower.
“That is also why many people now want to withdraw money. However, there is no possibility that term deposit interest rates will change. So, I do not see any reason to withdraw deposits now,” added Tarek.
Padma Bank, formerly Farmers Bank, is one of the nine new banks approved in 2013. But its operation remained questionable since its inception. For example, it opened offices and started hiring manpower even before getting approval.
The bank authorities also became involved in irregularities and corruption by collecting deposits from government organisations based on alliance. As a result, the bank fell into a crisis within four years.
As the crisis deepened, the then chairman Muhiuddin Khan Alamgir, also a former home minister, was forced to resign in 2017. The Bangladesh Bank also removed the bank's managing director AKM Shamim.
Four government banks and the Investment Corporation of Bangladesh (ICB) then provided capital support to save the bank. At that time, representatives of the four banks and ICB joined the board of the bank.
Besides, Chowdhury Nafeez Sarafat took over as the new chairman. Farmers Bank was renamed Padma Bank on 29 January 2019.
The then chairman of the bank’s executive committee Mahbubul Haque Chisty alias Babul Chisty and his son Rashedul Haque Chisty are in jail in connection with the irregularities at the former Farmers Bank. In October last year, they were sentenced to 12 years of rigorous imprisonment in a Tk 160 crore embezzlement case.
Messenger/Fameema
