Dhaka, March 14 -- Padma Bank, which has long been struggling with bad loans, is set to merge with the Shariah-based Exim Bank in an effort to protect its customers' interests.

The decision to acquire Padma Bank and unify the institutions was taken at Exim Bank's board meeting on Thursday.

"Our board has decided to proceed with the merger. We'll be signing a memorandum of understanding with Padma Bank on this matter on Monday," said Exim Bank's Chairman Nazrul Islam Mazumder.

The signing ceremony will take place at Bangladesh Bank in the presence of Governor Abdur Rouf Talukder.

The specifics of the deal will be outlined by the legal teams of both banks in line with Bangladesh Bank's guidelines.

Exim Bank's Managing Director Mohammad...