Kamana & Sewa Bikas Bank to start joint transaction from Shrawan 20 as Kamana Sewa Bikas Bank

Nepal Rastra Bank had given the final approval for the merger of Kamana Bikas Bank Limited (KMBL) and Sewa Bikas Bank Limited (SEWA) on Ashad 20, 2074. The joint transaction of both companies will start from Shrawan 20, 2074. The merged entity will be named as “Kamana Sewa Bikas Bank Limited” and will start the integrated business as a national level development bank. The merged entity will publish combined quarterly report from the upcoming quarter after their joint operation. After the merger, the registered office of the bank will be at Lekhnath-8, Srijanachowk Pokhara. The transaction of both banks will remain closed on Shrawan 19, 2073 for the process of system integration to start joint operation. Kamana and Triveni Bikas Bank had gone under merger with a share swap ratio of 1:1. KMBL has earned net profit of Rs 14.47 crore in the third quarter of the fiscal year 2073/74. After their merger, the paid up capital will reach Rs 2.06 arba. It has authorized capital of Rs 3 arba. Kamana Bikas Bank has been issuing 10:3 (30%) right shares to its existing shareholder. As per NRB’s directive for all national level development banks to increase their paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74, the merged bank will need to issue a further capital hike of around Rs 44 crore (around 21.50%).