Century Commercial Bank receives LOI from NRB to acquire Alpine Dev. Bank & Sagarmatha Finance

Century Commercial Bank Limited (CCBL) has received Letter of Intent (LOI) from Nepal Rastra Bank (NRB) to acquire Alpine Development Bank Limited and Sagarmatha Finance Limited (SAFL) on Chaitra 20, 2073. CCBL is also under process of endorsing final agreement to acquire Innovative Development Bank Limited and Araniko Development Bank Limited in a share swap ratio of 100:85 and 100:90 respectively from its upcoming AGM going to be held on Chaitra 31, 2073. Now, the companies will have to file an application to obtain final approval for acquisition from the regulator. The bank will be able to raise around Rs 2 arba capital after acquisition of these four BFIs. The bank will then issue additional 40% right share and stock dividend from the profits of the ongoing fiscal year to reach the NRB’s stipulated minimum paid up capital requirement of Rs 8 arba by the end of FY 2073/74. Currently, it has a paid up capital of Rs 3.68 arba. CCBL has earned net profit of Rs 22.39 crore in the second quarter of the fiscal year 2073/74. After the acquisition of all BFIs, the number of branches of the bank will reach 90.