Deva Bikas Bank to acquire Western Development Bank; Paid-up capital to exceed Rs 3 arba

Deva Bikas Bank Limited (DBBL) is all set to acquire Western Development Bank Limited (WDBL) as an agreement has been signed between the two development banks.

Chairman of the BOD of Deva Bikas Bank, Mr Subarnalal Bajracharya and Chairman of BOD of Western Development Bank, Mr Om Bhakta Budathoki had signed on the agreement.

After the merger of the development banks, the paid up capital of the bank will be more than Rs 3 arba. Similarly, the branch network will also reach 74 after acquisition.

DBBL had reported a net profit of Rs 20.23 crore in the third quarter of the current fiscal year while WDBL had reported net profit of Rs 6.19 crore in the same quarter. DBBl's paid-up capital stands at Rs 2.53 arba while the paid-up capital of WDBL stands at Rs 42.93 crore which will reach Rs 50.40 crore after the adjustment of 17.41% bonus shares.

Deva Bikas Bank is also in process of acquiring Sahara Bikas Bank Limited (SHBL). If acquisition happens at 1:1 swap ratio, then the paid-up capital of DBBL will reach Rs 2.78 arba.

After the completion of acquisition with WDBL at 1:1 swap ratio, the paid-up capital of the development bank will reach Rs 3.28 arba which will be the highest among the national level development banks.

Trading of WDBL which resumed in NEPSE after almost a year, after completing merger with Namaste Bittiya Sanstha again got halted from today. Shareholders of both Namaste Bittiya Sanstha and Western Development Bank are bearing the oppotunity loss of not being able to transact their share in the secondary market because of so long merger issue.