Garima and Nilgiri sign MoU for merger, to be finalized within current FY

ShareSansar May 5:

Garima Bikas Bank and Nilgiri Bikas Bank Limited have signed a memorandum of understanding (MoU) to enter into a merger after which it will be a national level development bank.

The MoU was signed by Dilip Pratap Khand, chairman of Garima Bikas Bank and Hari Kumar Shrestha, chairman of Niligiri Bikas Bank.

The swap ratio will be fixed after the completion of due diligence audit (DDA) but an official with the inside knowledge on the condition of anonymity said that the swap ratio is likely to be at 1:1.

The banks have agreed to operate under the name ‘Garima Bikas Bank’ after the merger. Paid up capital of Garima Bikas Bank stands at Rs 56 crore and 10 lakhs and paid up capital of Nilgiri Bikas Bank stands at Rs 15 crore. After the merger the paid up capital will be 71 crore and 10 lakhs.

Garima Bikas Bank started its operations from Waling 3, Syangja on 2064/07/18. However, during the third AGM of the bank it was decided to shift the head office to Pokhara. Garima Bikas has 19 branches.

Garima Bikas Bank Limited has reported 60.89% rise in profit for the third quarter of the current fiscal year 2071/72. According to unaudited financial statement published on Baisak 9, its net profit has increased to Rs 9.98 crore, Its EPS is at Rs 23.94 and net worth per share at Rs 131.42.

Meanwhile, Beni-based Nilgiri Bikas Bank’s third quarter profit for the fiscal year 2071/2072 surged by 72.22% to Rs 1.69 crore, up from 94.04 lakhs posted in the corresponding quarter of the previous fiscal year 2070/71. Its annualized earning per share is at Rs 18 and net worth per share is at Rs 127.73.