Government announces of two mergers of public banks

The government has announced plans to merge two public banks following a recent merger agreement between two private banks. The decision comes as part of a broader strategy to streamline the banking sector and enhance operational efficiency.

The merger proposal was finalized during a meeting between Bangladesh Bank Governor Abdur Rauf Talukder and the Managing Directors of the respective banks. The sudden call for the meeting caught many by surprise, with no prior notification provided regarding its agenda.

According to sources within the four concerned banks, discussions centered on the merger of Rajshahi Agricultural Development Bank and Bangladesh Development Bank (BDBL) with two other government banks. In one meeting, the Chairman and Managing Director of Sonali Bank and BDBL were informed of the decision to merge BDBL with Sonali Bank. Similarly, in another meeting, BDBL and Rajshahi Agricultural Development Bank were apprised of the same decision.

This move follows a memorandum of understanding signed on March 25, outlining the merger of Padma Bank, a fourth-generation bank, with the private sector Exim Bank. With the government now taking steps to merge two public sector banks, it reflects a broader trend toward consolidation within the banking industry.

Amidst these developments, stakeholders have sought reassurances regarding the job security of employees from Rakab and BDBL Bank. Given that these are government-owned entities merging with other government banks, concerns about job losses have been minimized, providing some relief to affected personnel.