Bangladesh Bank has appointed auditors to implement the merger of private sector Shariah-based Exim Bank and Padma Bank, which is in a fragile situation.
The audit firm will evaluate the assets of both the banks. Tuesday (April 16) Executive Director and Spokesperson of Bangladesh Bank. Majbaul Haque informed this information.
On the matter of merger, spokesperson Majbaul Haque said that the process of merger of Exim Bank and Padma Bank is ongoing. Audit firm Rahman Rahman & Haque has been appointed to assess the assets of the two banks. The institute will be able to give the final report within the next two to three months.
On March 18, the two banks signed a memorandum of understanding for the merger in the presence of the Bangladesh Bank governor. This was the first step in the merger. Banks agreeing to merge will be allowed as per the policy.
According to the policy of Bangladesh Bank on merger, both banks must agree on asset valuation. If they cannot reach an agreement, Bangladesh Bank will act as a mediator to help resolve the differences.
After getting the Central Bank’s approval, the two banks will have to comply with other formalities under the Companies Act-1994. Exim Bank will also need the approval of Bangladesh Securities and Exchange Commission to be listed in the capital market. After that, an application has to be made to the High Court and the scheme of amalgamation has to be submitted.
The merger of the two banks will be final after getting approval from the High Court. After the merger, the assets and liabilities of Padma Bank will be treated as the assets and liabilities of Exim Bank.
EAR/ZH/ASM
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