Janata Bank & Siddhartha Development Bank to start joint transaction from Asadh 30 as Janata Bank

Nepal Rastra Bank has provided final approval for the acquisition of Siddhartha Development Bank Limited (SDBL) by Janata Bank Nepal Limited (JNBL) on Ashad 25, 2074. The joint transaction of both companies will start from Ashad 30, 2074. The new entity will be named as “Janata Bank Nepal Limited” and will start the integrated business as an “A” class commercial bank. Janata Bank has acquired Siddhartha Development Bank in a share swap ratio of 1:1 respectively from its SGM held on Jestha 12 and Jestha 13, 2074. The transaction of both Siddhartha Development Bank and Janata Bank will remain closed on Ashad 29, 2074 for the process of system integration and data migration to start joint operation. SDBL has earned net profit of Rs 28.83 crore in the third quarter of the FY 2073/74. After the adjustment of 60% right shares and allotment of shares in this auction, the paid up capital of SDBL will reach Rs 2.27 arba. Janata Bank has earned net profit of Rs 38.18 crore in the third quarter of the FY 2073/74. Its current paid up capital stand at Rs 4.64 arba .  After the acquisition, the final paid up capital of Janata Bank will reach around Rs 7 arba. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, JBNL will need to issue a further capital hike of around Rs 1 arba (around 14.50%).