Padma Bank
A Bangladeshi private commercial bank formerly known as The Farmers Bank Limited.
Last updated August 24, 2026
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Overview
Padma Bank is a private commercial bank headquartered in Gulshan, Dhaka, Bangladesh. It began banking operations on 3 June 2013 under the name The Farmers Bank Limited and was described as a fourth-generation Bangladeshi bank. Its original business included retail, corporate and small and medium-sized enterprise banking, but the institution became associated with severe governance, liquidity and loan-recovery problems during its early years. The bank received its licence in a politically connected environment, with former politician and minister Muhiuddin Khan Alamgir identified as its founder and an early chairperson. Bangladesh Bank appointed an observer in January 2016 after concerns arose over irregularities involving loan distribution. Subsequent investigations and reporting described loans being issued without proper applications or approvals, breaches of banking rules, suspected embezzlement and weaknesses in internal controls. The bank also experienced difficulty meeting liquidity requirements and repaying depositors and institutional customers. During the 2017 liquidity crisis, The Farmers Bank used security-deposit funds held with Bangladesh Bank to repay short-term interbank obligations, causing it to fall below mandatory liquidity requirements. Bangladesh Bank later provided emergency repo support while requiring changes to the bank's board and additional capital from directors. In 2018, the Bangladeshi government announced a plan for state-owned institutions and the Investment Corporation of Bangladesh to acquire a majority stake as part of a rescue effort. The bank ultimately received substantial government support, while regulators and the Anti-Corruption Commission pursued cases connected with allegedly irregular loans, money laundering and misuse of funds. The institution was renamed Padma Bank in late 2019. The rebranding followed the removal of its former chairperson and managing director and was intended to separate the bank's later identity from the problems associated with The Farmers Bank. The new name did not immediately eliminate the bank's legacy liabilities: Padma Bank continued to face claims from government bodies, pension funds and other depositors, as well as regulatory penalties related to reserve requirements. In March 2024, Padma Bank and EXIM Bank signed a memorandum of understanding concerning a proposed takeover or merger, with the combined institution expected to operate under the EXIM Bank name. The proposed transaction was called off by the two banks on 24 December 2024. Publicly available reference material does not establish a subsequent ownership structure, definitive merger outcome or current operating position. Padma Bank is therefore best characterized as a Bangladeshi commercial-bank brand with an uncertain current status and a history shaped by recapitalization, regulatory intervention and attempted consolidation.
History
Padma Bank originated as The Farmers Bank Limited, a private commercial bank established in Bangladesh in 2013. It began operations on 3 June of that year after receiving a licence as a fourth-generation bank. Muhiuddin Khan Alamgir, a politician and former government minister, was identified as the founder and became an important figure in the bank's early governance. The bank's financial and governance problems became visible within a few years. In January 2016, Bangladesh Bank appointed an observer after finding indications of irregularities in the distribution of loans. Investigations and subsequent reporting alleged that loans had been issued to companies without properly documented applications or before formal approval. By 2017, the bank was reported to be in an extremely weak financial position. The liquidity crisis intensified in December 2017, when the bank used security-deposit funds held with Bangladesh Bank to repay short-term interbank borrowings to Agrani Bank, Janata Bank, Sonali Bank and NRB Bank. The transaction left the bank below the mandatory statutory liquidity requirement. Bangladesh Telecommunication Company Limited also recovered part of its deposits after the bank had twice refused access to the funds. Bangladesh Bank initially demanded board changes before extending assistance, then supplied a repo loan and gave the bank a limited period to address its liquidity problems and obtain additional funds from directors. In 2018, the government moved toward a rescue involving state-owned banks and the Investment Corporation of Bangladesh. Bangladesh Bank disclosed that its investigation had identified loans to multiple companies in breach of banking rules and attributed responsibility to senior figures associated with the institution. The Anti-Corruption Commission separately investigated allegations of embezzlement, money laundering and misuse of loans. Cases and indictments continued for several years and involved former bank officials, businesspeople and other individuals. Allegations were denied by Muhiuddin Khan Alamgir, who rejected claims that he had embezzled funds or taken commissions on loans. The bank was renamed Padma Bank Limited in late 2019. The change followed the removal of Muhiuddin Khan Alamgir as chairperson and the forced removal of managing director AKM Shamim by Bangladesh Bank. The renamed bank remained dependent on public-sector support and continued to face obligations to depositors and government-linked institutions. Reported creditors included pension funds and a number of public bodies, while the bank also faced regulatory penalties for reserve shortfalls. In 2020, Padma Bank sought a waiver of a fine imposed by Bangladesh Bank for failing to meet cash-reserve and statutory-liquidity requirements. Bangladesh Bank waived part of the fine. The Bangladesh Securities and Exchange Commission also initiated an investigation following allegations concerning the use of bank funds and the conduct of a former chairperson. In March 2024, Padma Bank and EXIM Bank signed a memorandum of understanding for a proposed takeover or merger. The plan was expected to result in operations under the EXIM Bank name, but the transaction did not proceed: the two banks called it off on 24 December 2024. Available reference material does not establish whether Padma Bank subsequently resumed independent operations, entered another restructuring, or ceased as a legal entity. Its current status therefore remains uncertain.
- 2024
Proposed EXIM Bank transaction was abandoned
[1]Padma Bank and EXIM Bank called off their planned merger on 24 December.
- 2019
The bank adopted the Padma Bank name
[1]The Farmers Bank Limited was renamed Padma Bank Limited after major governance changes.
- 2018
State-backed rescue was announced
[1]State-owned banks and the Investment Corporation of Bangladesh were identified as prospective majority investors.
- 2017
Liquidity crisis escalated
[1]The predecessor bank fell below statutory liquidity requirements and sought central-bank assistance.
- 2016
Bangladesh Bank appointed an observer
[1]The central bank intervened after concerns about irregular loan distribution and governance.
- 2013
The Farmers Bank was established
[1]The predecessor institution was established in Bangladesh and commenced banking operations on 3 June.
Products and positioning
A domestic private commercial bank serving retail, corporate and SME customers, with its later identity heavily affected by financial restructuring and regulatory recovery efforts.
Consumer banking
Retail banking
The bank's retail-banking scope included services for individual customers, such as deposit products, account services and personal credit facilities. The available reference material does not identify a definitive current product catalogue or specific branded retail products.
Business banking
Corporate banking
Corporate banking was part of the institution's stated commercial-banking remit, serving companies and institutional clients through deposits, lending and related banking services. Specific current facilities and product names are not established by the reference material.
Business banking
SME banking
Padma Bank also operated in the small and medium-sized enterprise segment. Its SME offering was intended to support business deposits and credit needs, but the available sources do not provide a current list of loan products, eligibility terms or distribution channels.
Deposit product
Fixed deposits
Fixed deposits formed part of the bank's deposit-taking activities. The institution faced reported repayment difficulties involving fixed deposits held by institutional customers, so the present availability and terms of this product cannot be confirmed.
Controversies
2020
Reserve-rule violations and securities investigation
Padma Bank sought relief from a regulatory fine concerning reserve requirements, while the Bangladesh Securities and Exchange Commission investigated allegations involving the bank's funds and former leadership.
2018
Alleged embezzlement and money laundering
The Anti-Corruption Commission detained and charged several people in cases alleging that bank funds and loans had been embezzled or laundered.
2017
Liquidity and statutory-reserve crisis
The predecessor bank used security-deposit funds to repay interbank obligations and fell below mandatory liquidity requirements, prompting emergency central-bank support.
2016
Irregular loan distribution at The Farmers Bank
Bangladesh Bank appointed an observer after concerns that loans had been distributed irregularly, including allegations that lending procedures were not properly followed.
Brand decisions
2024
Proposed takeover by EXIM BankM&ABackground
Padma Bank and EXIM Bank pursued a consolidation plan amid Padma Bank's restructuring history and uncertain financial position.
Action taken
The banks signed a memorandum of understanding under which EXIM Bank was expected to take over Padma Bank and operate the combined business under the EXIM name.
Aftermath
The proposed merger was called off by both banks on 24 December 2024. The subsequent status of Padma Bank is not established in the available reference material.
2019
Rebranding from The Farmers Bank to Padma BankStrategyBackground
The predecessor bank had suffered severe loan-quality, liquidity and governance problems and had undergone state-backed restructuring.
Action taken
The institution changed its name to Padma Bank Limited and replaced key members of its former leadership.
Aftermath
The new name became the bank's public identity, but reported depositor obligations, regulatory issues and legal cases continued after the rebranding.
Sources1 sources
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