UCB plans to take over troubled National Bank
United Commercial Bank (UCB) is likely to take over trouble-ridden National Bank Ltd (NBL), according to officials of the lenders.
The development came from a meeting between top officials of UCB and Bangladesh Bank presided over by Governor Abdur Rouf Talukder today.
For all latest news, follow The Daily Star's Google News channel. UCB Executive Committee Chairman Anisuzzaman Chowdhury and Managing Director and CEO Arif Quadri were present among others at the meeting at the central bank headquarters, according to officials.
UCB expressed its interest in acquiring NBL which suffered Tk 3,285 crore in losses in 2022, the highest in the history of Bangladesh's banking sector, burdened with high default loans.
Default loans accounted for 25 percent of NBL's total loans at the end of 2022.
By contrast, UCB which recorded Tk 402 crore in net profit in 2022, had a 5.99 percent nonperforming loan.
Contacted, a top official of the UCB seeking to remain unnamed, said the lender showed its interest in taking over the NBL as default loans will be taken by an asset management company.
Besides, the central bank will provide policy support if any bank acquires any weak bank voluntarily, the official said, adding that the existing sponsors are unlikely to have any stake in the NBL after valuation.
"NBL is one of the oldest banks. If we take out losses, it has some strengths, including its network to bring in remittances. It also has good export business," the official said.
NBL Chairman Syed Ferhat Anwar who was appointed by the central bank by dissolving the previous board to rescue the bank, said the takeover plan was not final yet.
Comments