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Six banks set to start unified business

The Annapurna Express

The Annapurna Express

Six banks set to start unified business

Global IME-BoK’s integrated business to begin on January 9, NIBL-Mega’s on January 11 and Prabhu-Century by the second week of January

The banking sector will see the successful completion of mergers of four commercial banks – Nepal Investment Bank-Mega Bank, Global IME Bank-Bank of Kathmandu, and an acquisition – Prabhu Bank-Century Commercial Bank by the second week of January.

The Global IME-Bank of Kathmandu merger will come to a logical conclusion on January 9 with the start of their integrated business. Post-merger, the merged entity will be named Global IME Bank.

Similarly, the integrated business of Nepal Investment Bank and Mega Bank will start on January 11. The Nepal Investment-Mega Bank merger will take place with a swap ratio of 1:09. Post-merger, the bank will be known as Nepal Investment Mega Bank with paid-up capital of Rs 34.43 billion.

The central bank’s board meeting on December 29 has given the final approval for the merger between Global IME Bank and Bank of Kathmandu. The same meeting also gave final approval for the merger between Nepal Investment Bank and Mega Bank.

After the merger, the Chairman of the Global IME Bank will be Chandra Prasad Dhakal while Ratna Raj Bajracharya, the current CEO of Global IME will continue to be the chief executive of the new entity formed after the merger.

Prithvi Bahadur Pande will be the chairman of Nepal Investment Mega Bank while Jyoti Prakash Pandey will be the CEO. Similarly, Prajanyaraj Bhandari and Kavi Tivrewala from Nepal Investment Bank will become directors after the merger. Similarly, Gopal Khanal, Muktiram Pandey, and Madan Kumar Acharya from Mega Bank will become directors after the merger. One director of Nepal Investment Bank is yet to be decided.

With NRB giving find nod to Prabhu Bank’s acquisition of Century Commercial Bank, both banks have decided to start an integrated business on January 13. Post-acquisition, the bank will be named Prabhu Bank. Prabhu Bank is acquiring Century Bank with a swap ratio of 1:1.

The total number of commercial banks that had reached 32 in 2014 will come down to 22 this year if all these mergers and acquisitions materialize.

 

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