NCC & Kumari Bank signed MOU for merger; Paid up to reach Rs 8.21 arba

Nepal Credit and Commerce Bank Limited (NCCB) and Kumari Bank Limited (KBL) have signed a memorandum of understanding (MoU) to enter into a merger process. On Wednesday, the two commercial banks signed a merger deal. Infrastructure Development Bank Ltd, International Development Bank, Apex Development Bank Ltd and Supreme Development Bank have already signed similar merger deal with the NCC Bank. The Nepal Rastra Bank (NRB) took over the NCC management suspending its board on Magh 21 2070, the NRB had already extended the term’s stay thrice. Currently NCC bank is under the supervision of central bank after dispute between two promoter groups threatened financial health of the bank. If the merger process of NCC goes as planned with other BFIs, the NCC bank would no longer be under direct supervision of  the central bank after electing new BoD. As per Monetary Policy 2072/73, Commercial Banks need to increase their capital to Rs 8 arba by the end of Ashad of the Fiscal Year 2074. If the current merger process goes as planned, the paid-up capital of the merged entity will reach Rs 8.21 arba.