The board of directors of BDBL approved the merger plan in an emergency meeting on April 8, said Md Habibur Rahman Gazi, managing director and CEO of the bank.
Merging a weak bank with a strong bank without addressing the issues that caused the weak banks to fail in the first place might bring down both the banks
The most recent bank merger proposal in Bangladesh reflects a pressing need for action due to Bangladesh Bank's determination to instill essential discipline and oversight in the financial sector, which is plagued by widespread irregularities.
Both banks are weak as per a Bangladesh Bank health index of banks and it is very difficult to get any positive result by merging two weak banks, said Fahmida Khatun, executive director of the Centre for Policy Dialogue.The decision taken by Exim Bank and Padma Bank on March 18 to merge appears to have been taken hastily without adequate preparation, for which the desired