Civil Bank & ILFC sign MoU for merger; Paid up to cross Rs 5 arba
Mon, Jan 25, 2016 9:47 PM on Latest, Featured, Stock Market,
Civil bank Ltd. (CBL) and International Finance and Leasing Co. Ltd. (ILFC) have signed a Memorandum of Understanding (MoU) to enter into merger process. The Chairman of CBL Mr. Ichhya Bahadur Tamang and the Chairman of ILFC Mr. Anjay Bahadur Shah signed the MoU.
ILFC has been in sight of many commercial banks for merger as it has paid up capital up of Rs 2.88 arba. This kind of deal would have been great relief for any commercial banks planning to reach paid up capital of Rs 8 arba. However, ILFC does come with downside of whopping Non Performing Loan of 17%.
The paid up capital of CBL will reach Rs 3.08 arba after distribution of 6.75% bonus share endorsed by the 5th AGM of the bank. The paid up capital of the merged entity will cross Rs 5 arba. The swap ratio for the merger will be set after the DDA. The merged entity plans to start joint operation by the first week of Jestha 2073 at the latest. The trading of both companies will be halted from tomorrow, January 26, due to ongoing merger process.
CBL has earned net profit of Rs. 5.87 crore in first quarter of the fiscal year 2072/73.
