Financial firm EXIM Bank, which operates in the private sector, has declared that it will not move forward with its proposed merger with Padma Bank.
After nearly nine months of negotiations, the announcement was made on Tuesday to merge the unstable Padma Bank with the more stable EXIM Bank, according to UNB.
The directors of EXIM Bank decided at a board meeting on Monday that the amalgamation would not proceed.
After Padma Bank, which had been beset by financial troubles and a history of scams, failed to recover despite a Tk1,700 crore government bailout, the merger was first agreed upon on March 14.
The Dhaka Stock Exchange (DSE) received EXIM Bank’s request to halt the merger earlier this week.
Officials stated that in light of this development, Padma Bank, which has been under a lot of financial strain, will have to look into alternative ways to stabilize its business.
