Citizen Bank moving ahead to acquire Sahayogi Bikas Bank; Preliminary swap ratio at 1:0.9

Citizens Bank International (CZBIL), on an official notice today, informed that it is moving ahead to acquire Sahayogi Development Bank (SBBLJ). The two banks have signed preliminary agreement and as per it the swap ratio stands at 1:0.9 i.e SBBLJ shareholders will be getting Rs 90 per share. However, the ratio may vary based on Due Diligence Audit (DDA).

After the acquisition, the deposits will reach Rs 75.68 arba and the loans & advances will reach Rs 68.48 arba. The paid-up capital of CZBIL stands at Rs 8.37 arba and that of SBBLJ stands at Rs 50.96 crore.

SBBLJ is currently operating in Dhanusa, Mahottari and Sindhuli Districts with 14 branches. Likewise CZBIL has 9 branches in these 3 districts, which post-merger will be 23. Apart from that CZBIL has a network of 95 branches, 80 ATMs and 100 branchless banking units serving around 5 lakh customers.