The National Bank Limited or NBL initially appeared to agree with the Bangladesh Bank on a possible merger with another bank, but its directors have decided not to set the plan in motion for now.

Riddled with loan scams and irregularities, the four-decade old bank showed some improvements last year by halving its annual losses to Tk 15 billion after suffering Tk 32.61 billion losses in 2022 - meaning total Tk 47.6 billion losses in two years.
   
bdnews24.com spoke to NBL Chairman Syed Ferhat Anwar on Sunday about the merger plan and the current state of the bank after the latest financial report was published on Dhaka Stock Exchange and Chattogram Stock Exchange websites.

The directors approved the report in a meeting on Saturday, where they also discussed the future of the merger plan. "No decision on merger now. Well take some time to see what happens later," said Ferhat.

One of the directors talked to bdnews24.com on condition of anonymity because he was not authorised to discuss details with the media. According to him, all the members of the board agreed that the bank should not go for a merger now.

"Our performance improved in the past few months. Our losses decreased in 2023 compared to the previous year," the director said. "Weve set a target after discussions with the top brass in the management. If we can achieve that target or reach near that, National Bank won be merged with another bank.

After Exim Bank and Padma Bank signed an agreement for a merger last month, the boards of Sonali Bank and Bangladesh Development Bank approved their amalgamation in the second week of April.

And City Bank has shown interest in acquiring BASIC Bank in a proposal backed by the central bank.

Amid the merger spree, the central bank reportedly began mediation between National Bank Limited or NBL, the first Bangladeshi private bank founded by a set of entirely local sponsor directors in 1983, and United Commercial Bank Limited or UCB, another bank formed the same year.
 
Bangladesh Bank Governor Abdur Rauf Taulkder held a meeting with the chairmen, CEOs and directors of the two banks at that time. When he presented the proposal on a merger amid scams in March, the board of directors was split.

The chairman asked for time to take a final decision as both sides remained adamant, a director said, requesting not to be named. Those opposing a merger also took time to grasp the issue first.