Pubali Bank And Mutual Trust Bank Join Race For Standard Chartered Bangladesh Retail Business

Dhaka, September 29, 2026 — 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, expanding the field of interested local banks to four. SCB plans to wind down its retail banking operations in Bangladesh, according to officials familiar with the matter.

🏦 BRAC Bank and City Bank had earlier confirmed their interest and held initial discussions with SCB — a story first reported by BangladeshExport. Now two more banks have entered the race, signalling strong local-bank appetite for SCB's established retail customer base.

💬 Pubali Bank CEO's Statement

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

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.

💬 Mutual Trust Bank's Position

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.

🏦 Bangladesh Bank's Position

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
• 👥 There would be no unrest if the lender closed its retail operations

🏢 SCB Bangladesh's Response

Contacted last night, Bitopi Das Chowdhury, country head of corporate affairs and brand & 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.”

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

🏛 SCB's 120-Year Bangladesh Heritage

SCB has operated in Bangladesh for over 120 years:

• 📅 1905: First branch opened in Chattogram
• 📅 Current network: 18 branches across key economic centres
• 📅 Services: Corporate banking, retail banking, wealth management, trade finance, treasury
• 📅 Market position: One of the largest foreign banks in Bangladesh

🌏 HSBC Precedent

In July last year, HSBC announced its decision to wind down its retail banking operations in Bangladesh — setting a precedent for foreign bank retrenchment from Bangladesh's retail banking segment. SCB's potential exit follows a similar pattern, with foreign banks finding it increasingly difficult to compete with local banks in retail segments while maintaining profitability.

💼 Why Four Banks Are Interested

The strong interest from four local banks — BRAC Bank, City Bank, Pubali Bank, and Mutual Trust Bank — reflects the strategic value of SCB's retail business:

• 💰 Customer base acquisition — SCB's retail customers are typically higher-income urban professionals
• 💰 Branch network expansion — SCB's 18 branches are in prime locations
• 💰 Product portfolio — SCB's credit card, wealth management, and personal loan products are well-established
• 💰 Talent acquisition — SCB's 1,500 retail staff are experienced professionals
• 💰 Brand association — taking over a 120-year-old foreign bank's operations enhances credibility

📋 Key Challenges In Any Deal

Despite the interest, several challenges remain:

• ⚠ Human resources — the retention of 1,500 SCB retail employees is a key sticking point, as noted by Pubali Bank's CEO
• ⚠ Valuation — determining the fair value of SCB's retail business (loans, deposits, branches, brand)
• ⚠ Regulatory approval — any takeover would require Bangladesh Bank and BSEC approval
• ⚠ IT system integration — potentially the most complex aspect of the transition
• ⚠ Customer continuity — ensuring SCB's retail customers experience minimal disruption
• ⚠ Timeline — the wind-down could take until 2028, suggesting a protracted process

💼 Wider Banking Sector Implications

The potential SCB retail business takeover — if it proceeds — would mark a significant milestone in Bangladesh's banking sector evolution:

• 🏦 Foreign bank retrenchment trend — with HSBC and now potentially SCB exiting, retail banking is becoming increasingly local-bank dominated
• 🏦 Market consolidation — stronger local banks acquiring assets from departing foreign banks
• 🏦 Competitive dynamics — whichever bank acquires SCB's portfolio would gain significant market share
• 🏦 Employee transition — the central bank's concern about 1,500 employee welfare is significant

📜 Looking Ahead

With four banks now in the race and the matter expected to be finalised by November 2026, the coming weeks will be critical:

• 📝 Due diligence — on SCB's retail portfolio
• 📝 Valuation — of the retail business components
• 📝 HR negotiations — resolving the employee retention issue
• 📝 Regulatory engagement — with Bangladesh Bank for approval
• 📝 Final selection — SCB choosing its preferred acquirer(s)

For Bangladesh's banking sector, the outcome will reshape the competitive landscape — potentially creating a stronger local bank with SCB's premium retail customer base, while marking the end of a 120-year era of foreign bank retail dominance in Bangladesh.