Exim Bank and Padma Bank have signed a Memorandum of Understanding, starting a merger that will result in the latter's name being dissolved throughout the consolidation process. This is an important step for the banking industry in Bangladesh.

In a strategic consolidation within the banking industry, Exim Bank has entered into a merger agreement with Padma Bank, as confirmed by the signing of a Memorandum of Understanding (MoU) today. The ceremony, marking a pivotal moment for both financial institutions, was attended by notable figures including Bangladesh Bank Governor Abdur Rouf Talukder, alongside deputy governors and chairmen of both banks.

Post-merger, Padma Bank will be subsumed under the Exim Bank brand, effectively ceasing its operations as an independent entity. Md Nazrul Islam Mazumder, Chairman of Exim Bank, hailed the merger as a “historic decision” aimed at bolstering the nation’s welfare. He reassured stakeholders, stating that the integration would safeguard depositor funds and ensure job security for Padma Bank’s employees.

The initiative, prompted by the government’s recommendation to strengthen the financial sector, positions Exim Bank at the forefront of taking over the operations of its counterpart. This move is anticipated to enhance the stability and service quality of the banking landscape in Bangladesh.