Century Commercial Bank to acquire Sagarmatha Finance; trading of Sagarmatha Finance suspended in NEPSE

Century Commercial Bank Limited (CCBL) has signed an agreement to acquire Sagarmatha Finance Company Limited (SAFL). Trading of Sagarmatha Finance has been suspended from today (Falgun 20, 2073) in Nepal Stock Exchange Limited (NEPSE) following the acquisition process. Issuing a press statement, the bank said that the two BFIs on Falgun 19, 2073 have signed a Memorandum of Understanding (MOU) for the acquisition. Century Commercial Bank had already signed Memorandum of Understanding (MOU) to acquire Innovative Development Bank Limited and Araniko Development Bank Limited. With acquisition with 3 BFIs, Century Bank will be able to increase its capital by Rs 1.50 arba. Sagarmatha Finance had issued 80% right share to its shareholders. After right share adjustment, its paid up capital has reached Rs 78 crore. The finance company has been rendering services from 14 branch offices. The company had earned Rs 5.61 crore net profit till Poush end. At present, CCBL has a paid up capital of Rs 3.68 arba. The bank has earned operating and net profit of Rs 32.74 crore and Rs 22.39 crore respectively in the second quarter of the current fiscal year 2073/74. The bank has collected 32.68 arba in deposits and extended Rs 29.1 arba in loan & advances.