Bangladesh Bank (BB) sent a letter to the National Bank dissolving its Board of Directors on Sunday.

In this letter obtained by The Business Post, the central bank has stated that to protect the interests of the depositors and that of the National Bank, the bank's management has been established in a new way according to the Bank Company Act.

In December last year, BB dissolved the board of the National Bank after receiving a recommendation from the Bangladesh Securities and Exchange Commission.

People familiar with the matter confirmed to The Business Post that the National Bank board had decided not to merge with the United Commercial Bank as the board had decided at that time.

On condition of anonymity, a senior official of National Bank at that time said, "The board of National Bank had verbally announced that the bank would not go for the merger. The board then met again and announced its final decision regarding the merger. Everyone including the chairman of the board agreed on the matter."