Nepal Investment Bank and Himalayan Bank to merge on Baisakh 12; Joint business to start from Ashard
Kathmandu, April 22
Nepal Investment Bank Ltd. and Himalayan Bank Ltd. are ready to sign a preliminary agreement (MoU) for the merger on Baisakh 14. The merger committee of the two banks has passed a draft MoU with a suggestion to sign on Tuesday next week. The final agreement of the merger committee of Nepal Investment Bank and Himalayan Bank has been signed today (Thursday).
According to sources, Himalayan Bank and Investment Bank will sign an initial memorandum of understanding for the merger on Tuesday, Baisakh 14 and send it to the Nepal Rastra Bank for approval on Baisakh 15.
The share exchange ratio (swap ratio) will be 1 to 1. Prithvi Bahadur Pandey will remain the chairman of the bank to be formed after the merger. The proposal has been made to have Ashok Rana of Himalayan Bank as the senior CEO and Jyoti Pandey of Investment Bank as the junior CEO.
Sources claim that the bank is being renamed as “Himalayan Investment Bank” after the merger.
After the merger, the merged bank will become the largest bank in the country. As this merger will be the largest in the history of Nepal so far, in the banking sector.
After the merger of the two banks, the paid up capital of the bank will be around Rs. 47 arba and it will be the largest bank in the country in all aspects. After the merger, the bank’s deposits are more than Rs. 3 kharba and loans are around Rs. 2 kharba 80 arba. Both the banks have come up with the idea of creating a bank with a capital of Rs 50 billion and changing the traditional banking model by identifying other areas of investment.