Padma-EXIM sign MoU, merge together as EXIM Bank

Padma and Exim banks have signed a Memorandum of Understanding for a voluntary merger, a first for the country.

The merger agreement was signed at the head office of Bangladesh Bank on Monday in presence of Bangladesh Bank Governor Abdur Rouf Talukder and Padma Bank Chairman Md Afzal Karim.

Exim Bank is taking all responsibilities of Padma Bank from now on, Nazrul Islam Mazumder, chairman of Exim Bank and the Association of Bankers said after the MoU signing ceremony.

In the country's first voluntary merger move, Padma Bank merged with Exim Bank after failing to get back to health with the government's Tk1,700 crore bailout package.

As a result, the directors of Exim Bank will take all decisions of the two banks for now. No final decision has been taken yet regarding the appointment of managing directors of the two banks. The process is going on in that regard, said Exim Bank Chairman Nazrul Islam Mazumder.

No official of Padma Bank will lose their jobs, he added.

Padma Bank Chairman Md Afzal Karim said, "There are two ways to integrate. We haven't acquisitioned rather merged. A merger between a strong bank and a relatively weak bank. There are about 1,200 employees of Padma Bank. They will not be fired, rather they will be working for Exim Bank."