Kamana Bikas & Kaski Finance signed MOU for merger; merged entity will be named Kamana Development Bank

ShareSansar, August 3:

Trading of Kamana Bikas Bank Limited (KMBL) and Kaski Finance Limited (KAFIL)) has been suspended from today in Nepal stockexchange following the merger process between the Pokhara based financial institutions.

The two BFIs on Shrawan 18 (today) have signed a Memorandum of Understanding (MOU) for the merger to form a National level development bank, which will be named Kamana Bikas Bank Limited with the logo of Kaski Finance Limited.

Chairman of Kamana Bikas Bank and Kaski Finance Limited, Mr. Rajendra Nidhi Koirala and Mr. Madan Sharma have signed the MOU. Post-merger Mr. Rajendra Nidhi Koirala of Kamana Bikas Bank will be recruited as the Chairman and Mr. Toya Raj Adhikari of Kaski finance as the CEO and Mr. Umesh Kumar Acharya as the Assistant CEO of the bank.

The Board of Director will have 4 members each from both company and an expert director from Nepal Rastra Bank said the Chairman of Kaski Finance, Madan Sharma.

Kamana Bikas Bank has a paid-up capital of Rs 27 crore 83 lakh. After the issuance of bonus share of 2071/72 the paid up will rise up to Rs 34 crore 20 lakh.

Similarly, Kaski Finance paid up capital remains at Rs 28 crore 35 lakh. After the issuance of bonus share of 2071/72 the paid up will rise up to Rs 33 crore 25 lakh.

After the merger the paid up capital of development bank will stand at Rs 67 crore 45 lakh said Madan Sharma, Chairman of Kaski Finance.

Kamana Bikas Bank and Kaski Finance last traded price stood at Rs 330 and Rs 277 respectively as on August 2 in NEPSE.