Amid a merger spree of banks in Bangladesh, discussions over the merger of troubled National Bank with another one have begun more than four decades after it burst onto the scene. Bangladesh Bank has reportedly begun mediation between National Bank Limited (DSE:NBL) or NBL, the first Bangladeshi private bank founded by a set of entirely local sponsor directors in 1983, and United Commercial Bank PLC (DSE:UCB) (United Commercial Bank Limited) or UCB, another bank formed the same year. Governor Abdur Rauf Taulkder held a meeting with the chairmen, CEOs and directors of the two banks on April 9, 2024.

?The banks are in discussions. They are evaluating the situation. Nothing has been concluded at the moment.

Bangladesh Bank will make a formal announcement when everything is finalised,? said central bank spokesman Mezbaul Haque. NBL Chairman Syed Ferhat Anwar told: ?Discussions for the merger with a healthy bank have begun.

Talks were held with several banks but the matter has not been finalised yet.? ?Our board discussed a merger with another bank. We sent the proposal to Bangladesh Bank.

Now the central bank will decide with whom we can be merged. ?We?re speaking with multiple banks, but have not taken a decision. We?ll go with the bank with whom we will have a good understanding.

Nothing is finalised yet. We?ve just begun the process. There is still much to discuss.?

Ferhat was the first from outside the Sikder family to be appointed as chairman in December 2023 in a long time after the Sikder Group took control of the bank in 2009. 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.