The new requirement of the Nepal Rastra Bank (NRB) to hike paid up capital has forced Bank and Financial Institutions (BFIs) to enter into Merger and Acquisition (M&A) process.
At present there are 10 commercial banks whose trading has been halted in Nepal Stock Exchange Limited (NEPSE) due to entering into merger process, but the merger process seems to be taking a long time making the shareholders of the banks suffer.
Here is the list of Commercial Banks, whose trading has been halted at Nepse.
| S.No |
Commercial Bank |
Symbol |
Last Trade Date |
LTP |
| 1 |
Bank of Kathmandu Limited |
BOK |
12/24/2015 |
585.00 |
| 2 |
Civil Bank Limited |
CBL |
1/25/2016 |
255.00 |
| 3 |
Kumari Bank Limited |
KBL |
1/13/2016 |
385.00 |
| 4 |
Lumbini Bank Ltd. |
LUBL |
12/24/2015 |
401.00 |
| 5 |
Machhapuchhre Bank Limited |
MBL |
9/22/2015 |
540.00 |
| 6 |
Mega Bank Nepal Limited |
MEGA |
1/28/2015 |
395.00 |
| 7 |
Nepal Credit and Commerce Bank Limited |
NCCB |
11/26/2015 |
363.00 |
| 8 |
Prabhu Bank Ltd. |
PRVU |
9/30/2015 |
415.00 |
| 9 |
Siddhartha Bank Limited |
SBL |
1/25/2016 |
595.00 |
| 10 |
Janata Bank Limited. |
JBNL |
9/22/2015 |
375.00 |
Mega Bank Limited (MEGA) had signed a memorandum of understanding with Paschimanchal Bikas Bank Limited (PDBL) for merger on 28 Januray, 2015 and it's already been more than a year, the trading of shares of these banks has been halted.
Anil Kesari Shah, CEO of Mega Bank said, “ We are waiting for the final approval from the Nepal Rastra Bank.”
The bank has a plan to start the joint operation from Baishak 2, 2073, he added.
Meanwhile the trading of
Prabhu Bank Limited (PRVU) has been halted in Nepse since September 30, 2015. It's been six months and the trading of shares of Prabhu Bank is still in halt though its merger process with Grand bank has been completed and joint operation has also started.
Amit Bhandari, Company Secretary of Prabhu Bank said, “Most probably the trading will resume within Baishak.”
The bank has already started the process to resume the trading, he added.
Machhapuchchhre Bank Limited (MBL) and Janata Bank Limited (JBNL) also entered into a merger process on September 22, 2015. It's been six months and the trading of both the banks are still halted due to the merger process.
