Padma Bank Managing Director Kazi Md Talha said the depositors were seeking to recover their funds

Padma Bank, formerly Farmers Bank, has sunk into such a financial abyss that the lender is struggling to pay its employees’ monthly salaries and has sought a Tk 5,000 crore bailout package from Bangladesh Bank to stay afloat.

This decision reverses the bank’s earlier plan from March 2024 to merge with Padma Bank

The interim government is going to formulate a specific roadmap to recover funds of the Bangladesh Climate Change Trust (BCCT), amounting to Tk 873.82 crore, that have been held up in Padma Bank since 2016.

Bank accounts of their business entities will also remain frozen for the next 30 days

Mergers cannot be based on the arbitrary decisions of authorities. This amounts to an imposition of the liability of poor banks on well performing banks.

NRB Bank appoints him as MD after that

Bangladesh Bank will focus on five merger or amalgamation proposals it has already received and not accept any other proposals for the time.

Initially, it is the general stock investors who might be at the receiving end of the process while the loan defaulters, whose misdeeds are largely responsible for Padma Bank’s current misfortunes, might come out victorious.

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 planned merger of Shariah-based Exim Bank and struggling Padma Bank is likely to take between 18 months to two-and-a-half years to complete, according to central bank officials.

The MoU will open the process of merger

The news that Shariah-based Exim Bank is going to merge with troubled commercial lender Padma Bank has taken the financial sector of Bangladesh by surprise.

Padma Bank, which has been struggling with the burden of toxic loans for years, will merge with EXIM Bank. It will be the first bank merger in Bangladesh

Bangladesh Bank today accepted his resignation letter.

Why has no investigation taken place to explore on which grounds and for whose benefit the lion’s share of the climate fund was deposited in the Farmers Bank?

How long till Farmers Bank pays back what’s due?

Tarek Reaz Khan, managing director of the embattled Padma Bank, has resigned from his post citing personal reasons.

Padma Bank, formerly known as Farmers Bank, is going to get over two years, until April 2028, to clear a Tk 55 crore penalty for its failure to maintain the regulator-stipulated cash reserve ratio (CRR) from 2017 to 2019.