BASIC Bank merging with City Bank

BASIC Bank is expected to be acquired by the private sector lender City Bank, as the central bank pushes forward with its initiative to facilitate the acquisition of weaker banks by stronger ones.

The information is known from Central Bank sources.

Officials have stated that the merger between Basic Bank and City Bank will be voluntary. Consequently, Basic Bank is merging with another bank, marking its integration as the second private sector bank.

This decision was made during a meeting attended by Bangladesh Bank Governor Abdur Rouf Talukder, City Bank Chairman Aziz Al Kaiser, and Managing Director (MD) Mashrur Arefin, this morning.

Before this, on March 19, the board of City Bank was advised to merge with Basic Bank. Then the matter was discussed between the board of City and Basic Bank. Officials of the two banks discussed this among themselves. Even if the two banks are merged, they will report separate financials for the next three years.

Mashrur Arefin, the managing director of City Bank, said, "With the voluntary merger policy, we're receiving substantial support from Bangladesh Bank and the government compared to mandatory mergers. As a result, we're exploring potential weak banks to merge with City Bank, strengthening our position."