Bad news for shareholders of to-be-merged banks

The shareholders of five banks, which are soon going to be merged, will not receive any shares in the new bank, as the value of assets tied to their existing shareholding is already negative.

Bangladesh Bank Governor Ahsan H Mansur shared the news today at a press briefing held at the central bank headquarters in the capital.

The governor said that the Bangladesh Bank found in its calculations that while the face value of each share is Tk 10, the net asset value for each is Tk 350 to Tk 420 in the negative.

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"So, the central bank is not taking them into consideration, as they hold zero liability," Mansur said. "No shareholder of the merged banks will get anything."

Meanwhile, shares of all five banks experienced declines on the Dhaka Stock Exchange today.

Exim Bank's share dropped to Tk 3, First Security Bank to Tk 1.9, Social Islami Bank to Tk 3.1, Union Bank to Tk 1.5, and Global Islami Bank fell to Tk 1.7.