Bangladesh banks retreat from Standard Chartered retail sale talks

Several banks in Bangladesh have stepped back from talks to acquire Standard Chartered’s retail business, citing workforce integration costs and uncertainty over retaining customer deposits, The Business Standard reported.

The business employs around 1,500 people. Differences in salaries, corporate culture, and deposit pricing have discouraged potential buyers, according to executives interviewed by the newspaper.

City Bank is the only local lender to sign a nondisclosure agreement (NDA) to assess the proposed transaction, industry insiders said. An unnamed senior executive said City Bank had not decided whether to proceed.

Mutual Trust Bank managing director Syed Mahbubur Rahman said customers could demand higher deposit rates from a local buyer or move their money elsewhere.

Standard Chartered announced Oct. 8 that it was exploring a sale. No completed transaction was reported.