The merger between Shariah-based Exim Bank and struggling Padma Bank is anticipated to span between 18 months to two-and-a-half years for completion, as per central bank officials. Following the signing of the letter of intent, the banks are required to submit a formal merger application to Bangladesh Bank, including detailed documentation on debts, assets, and liabilities.
Bangladesh Bank will review the scheme and appoint auditors for asset valuation. Legal approvals and compliance with the Companies Act 1994 are prerequisites. Approval from the Bangladesh Securities and Exchange Commission is necessary due to Exim Bank’s stock market listing. The merger’s success hinges on mutual asset valuation agreement; otherwise, Bangladesh Bank may intervene. Directors of weak banks will transition to shareholders post-merger. Depositors and employees of Padma Bank are assured protection.
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