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Bangladesh Development Bank-BDBL is merging with state-owned Sonali Bank and Rajshahi Agricultural Development Bank (Raqab) with Bangladesh Krishi Bank.
It is reported that a meeting was held on Wednesday (April 3) with the MDKs of these banks under the chairmanship of Bangladesh Bank Governor Abdur Rauf Talukder.
In the meeting, the banks were informed that Bangladesh Bank will soon issue a policy regarding the merger of the banks. After that, according to the policy, the board of directors of respective banks should decide to merge. It will then start the merger process by signing the Memorandum of Understanding.
In the meeting Bangladesh Bank Governor Abdur Rauf Talukder, Deputy Governor Nurun Nahar, Advisor Abu Farah. Nacher and executive director Saiful Islam were present.
A central bank official, who did not want to be named, said the government has taken the decision in principle and has informed the banks about the merger.
In this regard, the managing director of the state-run Sonali Bank. Afzal Karim told the media that no formal decision has been taken yet regarding the merger. Initially, the approval of the board of directors of the concerned bank should be taken regarding the merger. Then they will apply to Bangladesh Bank.
According to Bangladesh Bank, bad banks will be compulsorily merged with good banks from March next year. A PCA framework based on four indicators has been announced to identify weak banks before mergers. Bangladesh Bank has announced its support if any bank joins itself by December this year. Bangladesh Bank is trying to make the image of the whole sector better by reducing the number of bad banks through mergers. The IMF is under pressure to reduce high non-performing loans in the banking sector, improve capital conditions and improve management efficiency. Again, the central bank considers merger as a good option to overcome the current lack of confidence and improve the liquidity situation.
Earlier on March 25, a memorandum of understanding was signed regarding the merger of Padma Bank with the private sector Exim Bank. According to these two banks, the MoU will be signed by the banks discussed yesterday in the Central Bank.
People concerned say that since the government bank will be merged with the government bank, there is no reason to worry about the jobs of Rakab and BDBL bank employees.
According to the data of Bangladesh Bank, 13 thousand 150 crores of Sonali Bank's loans of 93 thousand 96 crores have defaulted till last December. It is 14.13 percent of the total debt. But there is no capital shortfall due to deferral facility. Tk 982 crore or 42.46 percent of BDBL's total loan defaulted till last December. Even if no income is received against this amount of loan, the bank has to calculate interest against the entire deposit.
On the other hand, 3 thousand 980 crores or 12.64 percent of Bangladesh Krishi Bank's 31 thousand 487 crores of loans have defaulted. And there is a capital deficit of 13 thousand 363 crores. In the banking sector, no other bank has such a deficit. 1 thousand 534 crores or 21.37 percent of the defaulters of Rajshahi Agricultural Development Bank. The bank has a capital deficit of Tk 2,472 crore.
Bangladesh /IJ
