Pamukbank to merge with state bank

The state-run Savings Deposit Insurance Fund, which holds Turkey’s failed banks in receivership, said in a statement that bids from Finansbank FINBN.IS and Hussein Nuaman Soufraki (HNS Group) were rejected as inadequate.

The two bids were made by a July 31 deadline.

The banking watchdog cited a capital shortfall of $2.5 billion when it seized Pamukbank in June last year. It subsequently injected new funds into the bank to boost its capital ahead of the planned sale, which it pledged to complete as part of an International Monetary Fund programme.