The merger process initiated seven months ago to rescue struggling banks as part of financial sector reforms has become uncertain following the sudden change in government.
The merger was initiated with the promise of saving ailing banks.
The Padma and Exim Banks had completed their audits as part of the merger requirements, and the audit reports were submitted to the central bank.
However, no one can specify the next steps in the merger, leaving Padma Bank in a precarious position.
Since signing the agreement in March, Padma Bank has effectively ceased collecting deposits, stopped issuing new loans, and is only managing existing loans while conducting daily banking operations at its branches.
The bank's Managing Director Tarek Riaz Khan resigned a month after the agreement to merge with Exim Bank and has since joined another private bank.
Moreover, Afzal Karim, managing director of Sonali Bank, who previously served on Padma Bank's board, was removed after the interim government took office.
Similarly, the positions of managing directors from three other state-owned banks—Janata, Agrani, and Rupali—have also become vacant, further depleting Padma Bank's board.
The loss of four directors has rendered Padma Bank unable to convene board meetings. This leadership crisis has left employees and customers in a state of uncertainty about the bank's future.
