Siddhartha Dev. and Ekta Bikas sign MoU for merger; scrips trading halts in NESPE

ShareSansar, September 8:

Tinkune- Kathmandu based National Level Siddhartha Development Bank Limited (SDBL) and Butwal based Regional level Ekata Bikas Bank Limited (EKBL) have signed a memorandum of understanding (MoU) to enter into a merger process yesterday. Trading of these scrips has been halted at the secondary market from today.

The MoU was signed by Mr. Ram Bahadur Bhandari- merger committee head and Director of Siddhartha Development Bank and Mr. Dhruva Prasad Dhakal-Chairman of Ekata Bikas Bank.

As per the company official of SDBL, the swap ratio will be fixed after the completion of due diligence audit (DDA) of both the companies.

As per the unaudited 4th quarterly report of FY 71/72, paid up capital of SDBL stands at Rs 64 crore 50 lakhs and paid up capital of EKBL stands Rs 20 crore. After merger the paid up capital and reserve of merged entities will be Rs 84.50 crore and Rs 2.57 crore.

Till date SDBL has total 18 branches and Ekta has 10 branches including 1 extension counter with total 266 employees.

SDBL has total Rs 6.98 arba deposit and Ekta has total Rs 2.28 arba deposit which will be in total Rs 9.26 arba deposit after merger. Similarly, SDBL has disbursed Rs 5.70 arba in loan and advances and EKBL has disbursed Rs 1.83 arba in loan and advances with total of Rs 7.53 arba in loan and advances of both.

In total both SDBL and Ekta has earned Rs 20.94 crore net profit and has in total 3.06 percent non-performing loans.