Two state-owned banks in Bangladesh, BASIC Bank and Rajshahi Krishi Unnayan Bank (Rakub), have sought clarity from the government regarding their proposed merger with other banks. BASIC Bank has expressed concern over significant deposit withdrawals since the merger announcement, while Rakub has voiced objections to merging with a weaker bank.  Despite Rakub’s reluctance, the government has approved the merger with Bangladesh Krishi Bank (BKB). The central bank aims to force the merger of at least 10 banks by January to address default loans and enhance governance. BASIC Bank and Rakub’s requests highlight uncertainties surrounding the merger process and the need for government intervention.

Two state-owned banks in Bangladesh, BASIC Bank and Rajshahi Krishi Unnayan Bank (Rakub), have sought clarity from the government regarding their proposed merger with other banks. BASIC Bank has expressed concern over significant deposit withdrawals since the merger announcement, while Rakub has voiced objections to merging with a weaker bank.  Despite Rakub’s reluctance, the government has approved the merger with Bangladesh Krishi Bank (BKB). The central bank aims to force the merger of at least 10 banks by January to address default loans and enhance governance. BASIC Bank and Rakub’s requests highlight uncertainties surrounding the merger process and the need for government intervention.

Sonali Bank and Bangladesh Development Bank recently signed an MoU, marking a significant step in their merger plans aimed at bolstering financial strength. The agreement, overseen by Bangladesh Bank, entails an assessment of BDBL’s assets and liabilities by an independent auditor. Job security concerns among BDBL employees persist, with decisions on retention deferred for three years post-merger based on performance. Sonali Bank’s CEO assures no job cuts and emphasizes customer interests will be safeguarded. Both banks’ chairpersons affirm the decision’s independence and positive impact on performance indicators. Notably, BDBL struggles with high non-performing loans (NPLs), while Sonali Bank grapples with a lower but still significant NPL ratio. Despite challenges, the merger signifies a strategic move towards enhancing the financial landscape of state-owned banks in Bangladesh.