Padma Bank, grappling with toxic loans, will merge with EXIM Bank, marking Bangladesh’s first bank merger. The decision, made by EXIM Bank’s board, aims to alleviate Padma Bank’s financial challenges. Previously known as Farmers Bank, Padma Bank faced survival threats in 2017, prompting a major ownership and management overhaul. Despite government intervention and rebranding as Padma Bank in 2019, it continued to struggle with bad loans. Chowdhury Nafeez Sarafat’s resignation in January fueled merger speculations. Crisis-hit banks like City and Eastern Bank may also merge with stable counterparts. Weak banks like ICB Islamic Bank, Commerce Bank, and others could undergo similar consolidation efforts.
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