FROM PAGE B1

Asif Khan, president of CFA Society Bangladesh, opposed the notion that the process is a merger. “This is not a merger, but rather a taxpayer-funded bail-out to depositors.”

He said the banks do not have sufficient assets to cover their combined liabilities and are now eventually bankrupt. Depositors will be prioritised for repayment, in accordance with the law.

According to Khan, the government also does not have the fiscal capacity to support shareholders, as it is operating under an International Monetary Fund (IMF) programme with strict targets.

Exim Bank’s 97 crore shares held by investors have a market value of Tk 293 crore. Global Islami Bank’s 84 crore shares are valued at Tk 142 crore, while general and institutional investors hold 47 crore shares of Union Bank with a market value of Tk 293 crore, according to DSE data.

Mizanur Rahman, a stock investor, said the government bears some responsibility for the situation of the banks and should compensate investors.

The market had already been affected by negative news about the banks, he added.

“If investors do not get any shares in the new bank, it will hit the market further,” said Rahman, adding that while the government plans to return a portion of deposits to savers, stock investors have been overlooked.

Preferring anonymity, a senior official at a merchant bank said stock investors should understand the difference between shares and deposits. Depositors always get priority if a bank falls into trouble.

“After depositors, staff salaries, and bond repayments will be settled. Only if anything remains will shareholders receive funds. These banks cannot even repay depositors, and with negative net asset value per share, shareholders are legally entitled to nothing,” he said.

He added that any additional government funds, such as a Tk 20,000 crore recapitalisation, should go to depositors rather than shareholders.