EXIM Bank has decided to cancel its proposed merger with Padma Bank, reversing its initial plan announced in March 2024.

The decision was made during a board meeting on December 23, as disclosed on the Dhaka Stock Exchange.

Padma Bank, rebranded from Farmers Bank in 2019 following severe financial difficulties, has struggled with high non-performing loans despite government intervention and management overhauls since 2017. The merger’s cancellation underscores the ongoing challenges faced by the beleaguered institution.