Union Bank agrees to merger

The scam-hit Union Bank has agreed to the central bank's plan to
merge it with other lenders, while EXIM Bank has asked for more time to revive
itself.
Under the
Bank Resolution Ordinance 2025, the central bank must consult the five
Shariah-based banks slated for consolidation before commencing formal merger
procedures.
Yesterday, the Bangladesh Bank (BB) held separate meetings with
Union Bank and EXIM Bank regarding the mergers. Governor Ahsan H Mansur joined
virtually, citing illness.
The boards
of directors and management teams of the two banks, along with the four deputy
governors and officials from the Bank Resolution Department of the BB, were
present at the meeting.
A day
earlier, the BB met with the board of directors and management team of First
Security Islami Bank.
The
central bank is set to meet with the boards of directors and management teams
of Global Islami Bank and Social Islami Bank today.
"Depositors
are coming to withdraw their money, but we are unable to pay. The sooner a
decision is made regarding these banks, the better. In this case, the banks may
undergo merger, restructuring, or some other measure," Fariduddin Ahmed,
independent director and chairman of Union Bank, told journalists after
yesterday's meeting with the BB.
He
mentioned that S Alam took Tk 28,000 crore from Union Bank. The borrowers in
whose names the loans were taken cannot be traced. As a result, it has become
difficult to return depositors' money.
Officials
of the central bank said that in the BB-EXIM Bank meeting, EXIM Bank presented
its turnaround plan. However, they were asked to revise and resubmit it with
more specifics.
The
central bank asked EXIM Bank officials to clearly outline how the bank will
return depositors' money, present a concrete plan for recovering defaulted
loans, explain how they will repay the Tk 8,500 crore borrowed from the central
bank, and address the large capital shortfall, according to meeting sources.
The bank
will be considered further only if its revised plan appears realistic, BB
officials said.
Officials
of EXIM Bank said it would take at least two years to bring the bank back into
good shape.
"The
question is whether the central bank will give us that time. But this bank did
not suddenly fall into trouble," one EXIM Bank official said on condition
of anonymity.
















