Kamana & Sewa signs agreement for merger to form Kamana Sewa Bikas Bank; Paid up to reach Rs 2.06 arba; Kamana proposes 30% right share

Kamana Bikas Bank Limited (KMBL) and Sewa Bikas Bank Limited (SEWA) have signed Memorandum of Understanding (MOU) for merger process on Mangsir 10, 2073. Chairmen from both development banks signed on the MOU. After merger, the merged entity will be named as Kamana Sewa Bikas Bank Limited. Trading of Kamana Bikas Bank Limited (KMBL) and Sewa Bikas Bank Limited (SEWA) has been suspended from today (Mangsir 12, 2073) in Nepal Stock Exchange Limited (NEPSE). Chairman of the  newly merged entity will be from  Kamana Bikas Bank whereas Mahesh Prasad Kafle  of Sewa Bikas Bank will be the Chief Executive Officer (CEO). Earlier, Kamana Bikas Bank and Kaski Finance had merged to form a national level development bank, Kamana Bikas Bank Limited. KMBL’s paid up capital remains at Rs 66.16 crore.  It has earned net profit of Rs 3.58 crore in the first quarter of the fiscal year 2073/74. Likewise, Sewa Bikas Bank has paid up capital of Rs 42.55 crore. The development bank has earned net profit of Rs 2.64 crore in the first quarter of the current fiscal year 2073/74. After the merger process, the total paid up capital will reach to Rs 2.06 arba. Collectively, the deposits of both banks have reached to Rs 11.55 arba and will extend  loan of Rs  10.84 arba. SEWA will be issuing 120% (51, 06, 662 units) right share to its existing shareholders from Mangsir 23, 2073 till Poush 27, 2073. On Ashwin 17, 2073 Sewa Bikas Bank had proposed 19% bonus share to its shareholders from the profit it earned in the FY 2072/73. Also, Kamana Bikas Bank Limited (KMBL) has decided to distribute 30 percent right share to its shareholders. As per the notice published in Nepal Stock Exchange (NEPSE) today, the company’s BOD meeting held on Mangsir 10, 2073 has proposed 30 percent right share to its shareholders. The decision is subjected to approval from Nepal Rastra Bank and the bank’s upcoming Annual General Meeting (AGM). KMBL had distributed 22.6 percent bonus share to its shareholders in the fiscal year 2071/72. Kamana Bikas Bank is rendering service through 21 branch offices, 9 ATM counters whereas Sewa Bikas Bank is rendering services through 19 branches and 7 ATM counters. After merger, the merged entity will have 40 branches in total and the ATM counters number will reach to 16.