Photo : Collected
Sonali Bank PLC and Bangladesh Development Bank (BDBL) PLC on Sunday signed a Memorandum of Understanding (MoU) to start the proceedings to merge their operations.
The development came after the state-run bank last month got approval from its board to merge with Sonali Bank, the largest bank in the country.
Bangladesh Bank Governor Abdur Rouf Talukder, Sonali Bank Chairman Ziaul Hasan Siddiqui, its Managing Director and CEO Md Afzal Karim, BDBL Chairman Shamima Nargis, and its Managing Director Md Habibur Rahman Gazi were present, among others, at the event.
Following the signing, Sonali Bank Managing Director Afzal Karim reassured BDBL Bank employees that the merger with Sonali Bank would not be a cause for concern.
"The unified entity would be stronger. The Bangladesh Bank will initiate further steps by appointing an audit firm," he added.
BDBL Chairman Shamima Nargis acknowledged the existing weakness in the bank's loan recovery but expressed confidence that if given time, the issue could be resolved independently. "However, the merger will proceed under the guidance of the Bangladesh Bank," she added.
In 2009, Bangladesh Shilpa Bank and Bangladesh Shilpa Rin Sangstha merged to form BDBL.
The Bangladesh Bank took the initiative of merging banks to overcome the crisis in the banking sector. It has announced mergers for Padma Bank, BDBL, Rajshahi Krishi Unnayan Bank, BASIC Bank, and National Bank. But BASIC Bank, National Bank, and Rajshahi Krishi Unnayan Bank have written to the central bank, expressing their disinterest in merger. Many bank clients are withdrawing deposits out of fear after merger plans were announced because they do not have a clear idea of the process.
Messenger/Fameema