Two more banks eye Standard Chartered Bangladesh's retail business

Pubali Bank and Mutual Trust Bank (MTB) have begun preliminary talks with Standard Chartered Bangladesh (SCB) about taking over the foreign lender's retail business.

SCB plans to wind down its retail banking operations in Bangladesh, according to officials familiar with the matter.

Tap here to add The Daily Star as a trusted source

BRAC Bank and City Bank had earlier confirmed their interest and held initial discussions with SCB.

"We are interested in acquiring SCB's retail banking business, and we have held discussions with the bank," Mohammad Ali, managing director and CEO of Pubali Bank, told The Daily Star.

He said the two sides differ over human resources. About 1,500 people work in SCB's retail division, and they would have to be retained as part of any deal.

"We have some reservations about this, but we want to settle the issue and move forward. We have learnt that the matter is expected to be finalised by November," he added.

A senior MTB official, speaking on condition of anonymity, also confirmed that the bank had held talks with SCB. He described them as preliminary, saying the process would take a long time. He said the wind-down of the foreign lender's operations is likely to take until 2028.

Arief Hossain Khan, executive director and spokesperson of Bangladesh Bank, said the central bank had heard of the plan but that no decision had yet been taken.

"Standard Chartered is a foreign bank, and it can take any decision in line with its strategy," he said.

The BB spokesperson added that the central bank hoped retail employees would not be laid off without due process and that there would be no unrest if the lender closed its retail operations.

Contacted today, Bitopi Das Chowdhury, country head of corporate affairs and brand and marketing at Standard Chartered Bangladesh, said: “These are market rumours or speculation, and we will not comment on such speculation.”

“Standard Chartered Group continually assesses the efficacy of our global business model and, where necessary, takes action to focus resources where we have the most distinctive client proposition,” she said.

“We are a super-connector global bank, deeply rooted in Bangladesh for over 120 years. The bank has a rich legacy and presence here, and we remain committed to Bangladesh.”

Bitopi said: “It is business as usual for us, and there is no change to our banking services and operations at this time.”

SCB has operated in Bangladesh for over 120 years. Its first branch opened in Chattogram in 1905, and it now has 18 branches across the country's key economic centres.

In July last year, HSBC announced that it would wind down its retail banking operations in Bangladesh.