Padma Bank has merged with the Sharia-based Exim Bank Plc.

The merger happened on Monday through a formal deal signing at Bangladesh Bank.

The central bank’s Governor Abdur Rauf Talukder and senior officials, officials of the two banks were present at the deal signing ceremony.

This is the first merger of two banks in the country after Bangladesh Bank’s recent initiative to merge weaker banks with sound or strong ones.

Exim Bank Chairman Nazrul Islam Majumdar told UNB that Padma Bank will no longer exist from tomorrow. Due to the merger, the new operations will be carried out under the name of Exim Bank.

“No employees will lose their jobs despite the merger. However, the directors of Padma Bank cannot be on the Board of Directors of Exim Bank. No decision has been made yet regarding the managing directors of the two banks,” he said.

Majumder said, "There was no pressure from the government to merge with Padma Bank, but there was a suggestion from the government. We have done it in the interest of the country, in the interest of the economy.”

Following the merger, depositors and shareholders will not face any issue, he said.

He said, “There are two methods of integration of banks — acquisitions and mergers. We didn't do acquisition, we did a merger.”

Padma Bank, which has about 1200 employees, will work for Exim Bank, sources said.

Padma Bank has defaulted loans of around Tk 4000 crore and the liability of government banks is about Tk 3000 crore with Padma.

In this regard, Exim Bank Chairman said, "Padma has been merged, as a result, all liabilities of Padma Bank have now been taken over by Exim Bank.”

About Shariah-based banks, Nazrul Islam said, “Exim Bank is Shariah-based. Even though Padma Bank is general, since we (Exim) have merged them, they will also be Shariah-based. Every index of Exim Bank is in a good position, hope it will do better.”