BASIC Bank to merge with City Bank in strategic consolidation move

UNB:
In a significant development within Bangladesh’s banking sector, BASIC Bank is set to merge with City Bank, following a decision made during a Monday meeting between Bangladesh Bank Governor Abdur Rouf Talukder and top officials from City Bank.

The meeting saw the presence of Aziz Al Kaiser, Chairman of City Bank, and Mashrur Arefin, the bank’s Managing Director and CEO, discussing the future of this strategic consolidation with the central bank’s governor.

A source from the central bank revealed that the merger between BASIC Bank and City Bank will be carried out on a voluntary basis. This decision comes after City Bank’s board recommended the merger on March 19, which was subsequently discussed with BASIC Bank’s board and officials from both banking institutions.

Despite the merger, it has been decided that for the next three years, the two banks will continue to report their financials separately, according to sources close to the matter.

Mezbaul Haque, Executive Director and spokesperson for Bangladesh Bank, commented on the broader context of bank mergers in the country. He noted that several banks are currently engaging in discussions with the central bank on various issues, including potential mergers. Haque assured that the public would be informed once a final decision is reached on these matters.

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.