What Exim Bank's chairman says about Padma's employees

Around 800 employees of Padma Bank are concerned about their fate after the merger with Exim Bank. But the Exim Bank Chairman Nazrul Islam Mazumder expressed confidence about the future of the Padma Bank officers.

"No employee will lose their jobs after the merger," he told reporters after the MoU signing in the Bangladesh Bank today (18 March).

"Within a year, the combined effort of both banks' officers will allow us to bounce back. We had been unable to provide our workers with seating. But now, we can utilise the space from both banks," he said.

"We can use Padma Bank's network in places with no branch of Exim Bank," he added, describing the merger as a union between a strong and a comparatively weaker [Padma] bank.

Asked about Padma Bank's liabilities, he said, "From now on, all of Padma Bank's liabilities are Exim Bank's responsibility. We will settle all their debts.

"Starting today, Exim Bank assumes responsibility for all of Padma Bank's manpower, investors, shareholders, and other commitments," Nazrul added.

Padma Bank signed a memorandum of understanding (MoU) with Exim Bank today (18 March) to merge.

According to the Bangladesh Bank roadmap to reduce NPL by 2026, no employees of the merged banks would lose their jobs in the next three years due to the merging. 

This, however, does not limit the termination of jobs due to performance or any other reasons. 

He also mentioned that directors from Padma Bank will not be included in Exim Bank's managing board.

He also said a final decision regarding the managing director of the merged bank is yet to be made.

Padma Bank's total loan is Tk4,054 crore, with around Tk3,000 crore owed to government banks. 

"With the merger, Exim Bank has assumed all liabilities and assets of Padma Bank," the Exim Bank chairman said.

As of the end of December 2023, Padma Bank's deposits totalled Tk6,186 crore, including Tk1,964 crore from governmental institutions, he said. 

This includes Tk1,000 crore from state-owned banks like Sonali, Agrani, Janata, Rupali, and the Investment Corporation of Bangladesh (ICB), and Tk760 crore from the Climate Change Trust Fund, he noted.

He further said, the rest, slightly over Tk1,000 crore, includes deposits from institutions like the Jibon Bima Corporation, Sadharon Bima Corporation, Power Development Board, Titas Gas, Telecommunication Regulatory Commission (BTRC), Mongla Port Authority, Bangladesh Infrastructure Finance Fund Limited (BIFFL), Islamic Foundation, Narayanganj Dockyard & Engineering Works, among others. 

"Over the past few years, the bank has returned Tk874 crore to government institutions, including Tk224 crore in 2022 and Tk80 crore in 2023.

Many institutions have not received their deposited funds back, with some not receiving interest," Nazrul said.