Nepal Investment Bank Ltd and Himalayan Bank Ltd—two of the oldest commercial banks in the country—have confirmed their merger deal, creating the biggest bank in Nepal with a total paid-up capital of nearly Rs 27 billion.
NIBL and HBL this week jointly signed a memorandum of understanding to merge with the intention of strengthening the banking sector of the country in line with Nepal Rastra Bank's Merger and Acquisition Policy. NIBL Chairman Prithvi Bahadur Pandé and HBL Chairman Tulsi Prasad Gautam signed the MoU.
Pandé will remain the chairman of the bank, whereas Ashoke SJB Rana, the chief executive of HBL, will be the chief executive officer of the merged entity. The board of the merged bank will comprise three members each from NIBL and HBL, in addition to an independent member.