BoK seeks shareholders' approval for merger

ShareSansar, June 27

Bank of Kathmandu has called for a special general meeting to seek shareholder’s approval to start a merger process.

The special general meeting has been scheduled for July 21, 2013 (Shrawan 6, 2070). The AGM will be held at Nepal Pragya Pratishthan in Kamaladi, Kathmandu.

In an announcement published on June 27, the bank has said that the main agenda of the meeting will be to identify a bank or finance institution for merger, sign an MOU for the same and, based on that MOU, file an application at Nepal Rastra Bank to seek the central bank’s approval in principle for the merger.  At the meeting the bank will also seek shareholders approval on appointing advisors and auditors for due diligence audit and to finalize all the processes related to merger.  

The meeting will also elect three board representatives from among promoters and four from among public shareholders.   

There have been strong indications that the BoK is in merger talks with ILFC.

ILFC, which has a paid-up capital of Rs 200 crore, is capital-wise eligible to upgrade into a commercial bank and had applied for the same with Nepal Rastra Bank, but due to the NRB policy regarding upgradation ILFC was unable to upgrade.

There is a huge pressure on ILFC from its shareholders regarding its upgradation to a commercial bank. Currently there is over capitalization in ILFC due to the higher capital than required. ILFC has only option left now that is merger. Similarly, Bank of Kathmandu is also facing problem recently to increase its capital base. So this can be the reason why BOK is opting for a merger.

Financial highlights of the two companies for the third quarter of the FY 2069/70.

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Current Board of Directors of Bank of Kathmandu

Current Board of Directors of International Leasing and Finance Company.