Depositors of 5 merged banks likely to get back money in a month: BB governor
Shareholders’ share value will be zero
The Bangladesh Bank started physical intervention on all five merged banks by officially declaring them non-viable and dissolving the existing board.
At a press conference today (5 November), Bangladesh Bank Governor Ahsan H Mansur said all five banks will be run by administrators appointed by the central bank.
The governor also said depositors are likely to get access to their funds within a month.
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Depositors with less than Tk2 lakh will be able to withdraw.
The payment of other depositors over Tk2 lakh and institutional depositors will be clarified later.
However, the governor discouraged depositors to withdraw money unnecessarily as the newly formed merged bank will be "very strong and owned by the government".
Depositors will get market-based interest rates on deposits, he also said.
"Shareholders will not get compensation as net asset value against Tk10 face value became a negative maximum Tk450 of each bank," he said.
As a result, share value is considered as zero value for both sponsor shareholders and retail shareholders.
The governor assured that employees of five banks will not lose their jobs at this time.
The bank will be run by the government but each bank will operate as a private bank until the final merger into one bank, the governor said.
