Machhapuchchhre & Janata Bank officially enters into merger process; joint merger committee formed

Machhapuchchhre Bank Limited (MBL) and Janata Bank Limited (JBNL) have entered into a merger process. As per the press release, both the banks have signed Memorandum of Understanding (MoU) for the merger. MOU was signed by the Chairman of MBL, Mr. Birendra Mahato and by Chairman of JBNL, Mr. Uday Nepali Shrestha. After the merger the bank will be named Machhapuchchhre Bank Limited. A six member joint merger committee, three member from each bank, has been formed to further the merger process. Following are the members from respective banks in the joint merger committee:

1. Birendra Prasad Mahato, Machhapuchchhre Bank- Coordinator
2. Roshan KC, Director, Machhapuchchhre Bank    -Member
3. Gyan Prasad Karmacharya, Director, Machhapuchchhre Bank- Member
4. Guru Prasad Neupane, Director, Janata Bank - Member
5. Keshav Raimajhi, Director, Janata Bank - Member
6. Bhimananda Dhungana, Director, Janata Bank - Member

The chairman of the merged entity will be the present chairman of Machhapuchchhre Bank, Dr. Birendra Prasad Mahato .Whereas 9 members Board Of Directors (BOD) will comprise of 5 members from Machhapuchchhre Bank, 3 from Janata bank and an expert director. At present MBL has a paid up capital of Rs 2.95 arba whereas Janata Bank has a paid up capital of Rs 2.6 arba. As per the agreement of swap ratio, the merge entity will have a paid up capital of Rs 5.71 arba. After the merger, the bank will have 92 branches and 98 ATM outlets. Below given the lists of financial highlights till Ashad 2072:

Lists	Machhapuchchhre Bank	Janata Bank
Paid up capital (Rs)	2 arba 95 crore	2 arba 6 crore
Reseve(RS)	1 arba 7 crore	29 crore
Deposits (Rs)	44 arba 20 crore	22 arba 92 crore
Loans (Rs)	34 arba 82 crore	18 arba 51 crore
Net profit (Rs)	61 crore	15 crore

  Trading of "JBNL" and “MBL” has been now suspended in NEPSE on Ashwin 4, 2072 as both the banks has entered into the merger process. The tentative share swap ratio between the banks has been fixed. The share swap ratio of MBL: JBNL stands at 121:85 respectively.