Global IME Bank, Social Dev Bank to merge

KATHMANDU, MAY 15 -

Global IME Bank and Social Development Bank on Tuesday signed memorandum of understanding (MoU) for their merger .

The move comes a year after Global Bank, IME Financial Institution and Lord Buddha Finance merged to become Global IME Bank.

Global-IME Chairman Chandra Prasad Dhakal and Social Development Chairman Krishna Gopal Shrestha signed an agreement to his effect.

In a statement, Global IME said the MoU has been forwarded to the Nepal Rastra Bank for the latter’s preliminary approval. Also, share transaction of Global-IME has been halted for the time being on the Nepal Stock Exchange until the merger process completes.

As per the central bank ’s merger bylaw, a merger process has to be completed within six months after the merger MoU signing.

After the merger , the merged entity’s total paid-up capital will be Rs 2.63 billion.

Global IME’s deposit base stands at Rs 30.33 billion and credit at Rs 24.90 billion as of third quarter of the current fiscal. Social Development Bank has deposits of Rs 645 million and lending of Rs 482 million.

If the merger succeeds, the merged entity will be the first bank of the country formed through the amalgamation of four financial institutions.

Source: The Kathmandu Post