In a significant development within Bangladesh's banking sector, The National Bank Limited is set to merge with United Commercial Bank (UCBL).
This decision was taken in a meeting held at Bangladesh Bank on Tuesday.
Bangladesh Bank Governor Abdur Rauf Talukder presided over the meeting.
In the presence of Bangladesh Bank Governor Abdur Rauf Talukder, some members of the board of directors and senior officers of the two banks were present.
UCB and NBL have discussed the issue of merger earlier at the initiative of Bangladesh Bank.
National Bank's financial base is weak. On the other hand, UCB's financial base is strong.
This move comes amidst a trend of bank consolidations within Bangladesh, highlighted by the recent agreement for Padma Bank to merge with EXIM Bank in March, signaling a wave of strategic mergers aimed at strengthening the country's banking sector.
Bangladesh Bank has recently issued Bank Merger Policy, which has detailed guidelines for merger of weak banks with strong banks – both voluntary and mandatory.
It has already been decided to merge the state-owned Basic Bank with the private sector City Bank through the mediation of the Bangladesh Bank.
And, following a meeting at Bangladesh Bank last week, it agreed to merge BDBL with state-owned Sonali and Rajshahi Agricultural Development Bank into Bangladesh Krishi Bank.
