Kasthamandap Dev. Bank signs acquisition deal with Mahakali Bikas Bank; trading halted in NEPSE

Kasthamandap Development Bank Limited (KDBL) and Mahakali Bikas Bank Limited (MBBL) have entered into acquisition deal. Jagannath Gyawali , Chairman of Kasthamandap Development Bank and Surendra Kumar Joshi, Chairman of Mahakali Bikas bank Limited signed memorandum of understanding (MOU) today (Jestha 20, 2073). The acquisition pact has been signed as per the direction of Nepal Rastra Bank to maintain the paid up capital at Rs 2.50 arba  and to form a national level development bank. Trading of both development banks has been suspended from today in Nepal stock exchange following the acquisition process. Kasthamandap Development Bank 8^th Annual General Meeting had approved 4:1 (25%) right share to its existing shareholders. The bank will  be issuing 4:1 right share to its existing shareholders by the end of Poush to make its paid up capital Rs 1.80 arba. At present, KDBL has paid up capital of Rs 67.99 crore. The bank has earned net profit of Rs 19.32 crore in third quarter of 72/73 FY. The development bank has 19 branch offices and 7 ATM counters. Likewise, MBBL has paid up capital of Rs 12.72 crore. The bank has earned net profit of Rs 1.27 crore in third quarter of the 72/73 FY. After the acquisition , Kasthamandap Development Bank will further its service in Far-Western Development Region as well. Currently, Kasthamandap Development Bank is rendering services through 19 branch offices and Mahakali Bikas Bank is rendering services through 7 branch offices in Far- Western Development Region. Kasthamandap Development Bank and Mahakali Bikas Bank last traded price stood at Rs 300 and Rs 304 respectively as on June 1, 2016 on NEPSE.