BASIC employees against merger with City Bank

Employees of the state-owned BASIC Bank have opposed the proposed merger with the private City Bank and instead called for amalgamation with another state-owned bank.

Businesses in Rajshahi have also protested against the initiative to merge Rajshahi Krishi Unnayan Bank (Rakub) with Bangladesh Krishi Bank – both state-run institutions.

On Tuesday afternoon, officers and employees of BASIC Bank submitted a memorandum to Bangladesh Bank Governor Abdur Rouf Talukder, expressing their demand.

Abu Mohammad Mofazzal, acting managing director of BASIC Bank, told The Business Standard, "This is a state-owned bank. Its recruitment process, promotion, and salary structure are different from those of private banks. Therefore, the process of merging with a private bank is completely inconsistent."

Meanwhile, in a written statement, the Rajshahi Chamber of Commerce and Industry expressed concerns that one of the objectives of the merger is to strengthen weaker banks. However, if Rakub is merged with the financially weak Krishi Bank, the bank's condition may deteriorate instead of improving.

According to the statement, Krishi Bank's losses are increasing every year, whereas Rakub has been posting operating profits for the last three years. Additionally, Rakub expects to achieve a net profit in the coming year.