The merger between Padma Bank and Sharia-based EXIM Bank, formalized at Bangladesh Bank, has led to a downturn in EXIM Bank’s share price. Following the merger day, it fell by 3% to TK 9.70 from Tk 10.00. However, EXIM Bank’s shares have been on a declining trend since February 29, dropping steadily by approximately 6% until March 18 2024, when it stood at Tk 10.30.
Furthermore, with no December 2023 financial statement released yet, shareholders have not received dividends, although a 10% cash dividend was issued for 2022. The merger process, expected to take three to six months, will see Padma Bank absorbed into EXIM Bank, which will continue operations under its name, with all Padma Bank customers transitioning to the new entity. And until clarity emerges on the merger’s effect, a continued bearish movement is expected.
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