DDA for merger of Everest Bank and Laxmi Bank concludes; Swap ratio to be finalized soon

The London based audit firm “Ernst and Young”has completed the Due Diligence Audit (DDA) for the merger of Everest Bank Limited and Laxmi Bank Limited. As per the reports, the valuation result will be presented within 15 days.

The swap ratio for the purpose of the merger has yet to be finalized but the same audit firm will be determining the swap ratio. If everything goes according to the plans, then the Nepalese Banking sector is likely to observe the biggest merger in its history.

Currently, Everest Bank has Rs 1.6 kharba as deposits while Laxmi Bank holds Rs 63.23 arba as deposits. Similarly, the banks have Rs 88.17 arba and Rs 58.69 arba as loans respectively.

The confirmation about the merger will be made within 15 days.