Mahalaxmi Finance Limited, Siddhartha Finance Limited and Malika Bikas Bank Limited have signed a memorandum of understanding (MoU) to enter into a merger process.
As per the press release published today, the three BFIs have signed merger deal to form a National level development bank, which will be named Mahalaxmi Bikas Bank Limited. Trading of these three BFIs has been suspended from today in Nepal stock exchange (NEPSE) following the merger process
Merger Committee Coordinator of Mahalaxmi Finance Mr. Sanjay Giri, Chairman of Siddhartha Finance, Mr. Ramesh Kumar Agrawal and Mr. Rajesh Rauniyar, coordinator of Malika Bikas bank have signed the MOU.
After the merger, the bank will form Board of Director (BOD) committee of 7 members, 3 member from Mahalaxmi Finance, 2 From Siddhartha finance and 2 from Malika Bikas Bank. Share Swap Ratio will only be decided after Due Deligence Audit (DDA) of the company.
After the merger process, the bank’s paid up capital will reach to Rs 1 arba 15 crore 62 lakh. The deposit base of the merged institution will be Rs 10 arba 71 crore and loan and advances figure of Rs 8 arba 68 crore with 40 branches in total.
As per Monetary Policy 2072/73, National Level Development Banks need to increase their capital to Rs 2 arba 50 crore by the end of Ashad of the Fiscal Year 2074. The bank will increase its paid up capital till the end of Ashad 2074 by distributing right share and endorsing merger/ acquisition process.
Second quarter financial highlights of three BFIs are given below:
| Second Quarterly financial report of FY 2072/73 |
| |
Malika Vikas Bank (Rs in ‘000) |
Siddhartha Finance (Rs in ‘000) |
Mahalaxmi Finance (Rs in ‘000) |
| Paid up Capital |
242,550.00 |
324,314.00 |
483,000.00 |
| Reserve and Surplus |
175,921.00 |
177,844.00 |
156,173.00 |
| Net Profit/Loss (F-3.12-3.13) |
49,853.00 |
27,820.00 |
38,278.00 |
| Networth per Share (Rs.) |
172.53 |
154.84 |
132.33 |
| Earning Per Share annualized (Rs.) |
41.11 |
17.16 |
15.85 |
