DDA report of NCC, Kumari, and other four development banks fixed; swap ratio of NCC:Kumari stands at Rs 100:98

Nepal Credit and Commerce Bank Limited (NCCB), Kumari Bank Limited (KBL), Infrastructure Development Bank Ltd (IDBL), International Development Bank Ltd (INDBL, Apex Development Bank Ltd (APEX)and Supreme Development Bank Ltd (SUPRME) are in the merger process. DDA report of these banks has been made ready. DDA report of all the merging banks was presented at a joint meeting held on Wednesday. As per a source, the DDA report has fixed the share price of NCC Bank at Rs 160 per unit, the share price of Kumari Bank is at Rs 157 per unit. The share price of Infrastructure Development Bank has been fixed at 122 per unit, the share price of Supreme Development Bank is at 119 per unit, the share price of International Development Bank is at Rs 114 per unit and share price of Apex Development Bank has been fixed below 100 per unit. The probable swap ratio of NCC:Kumari:Infrastructure Development:Supreme Development: International Development: Apex Development bank stands at 100:98:76.25:74.37:72.25:60. The merged entity will be given a new name. There can be some changes in swap ratio as per the MOU. Now, these banks will be applying for approval of merger from Nepal Rastra Bank (NRB).The banks are planning to finish the merger process by Ashad, 2073. As per Monetary Policy 2072/73, Commercial Banks need to increase their capital to Rs 8 arba by the end of Ashad of the Fiscal Year 2074. If the current merger process goes as planned, the paid-up capital of the merged entity will reach Rs 8.25 arba.