Nepal Rastra Bank (NRB) Provides Green Light Finalizing Acquisition of Adarsha Laghubitta (ADLB) By Deprosc (DDBL)

The Nepal Rastra Bank (NRB) has provided final approval to proceed forth with the acquisition of Adarsha Laghubitta (ADLB) by Deprosc Laghubitta (DDBL).

The central bank, NRB, notified of the final approval of the acquisition by issuing a press release today for the same.

Earlier, Chitwan-based Deprosc Laghubitta Bittiya Sanstha Limited (DDBL) had signed a final agreement regarding acquiring Adarsha Laghubitta Bittiya Sanstha Limited (ADLB). The information regarding the signing of the final agreement regarding the acquisition had been signed by the companies on 13th Chaitra 2079.

The 21^st AGM of  Deprosc Laghubitta had passed the agenda to acquire Adarsha Laghubitta in the share swap ratio of 100% and had authorized the board to look into all the ongoing and upcoming merger-related prospects of the institution.

Deprosc Laghubitta operates 149 branches in 71 districts and serves more than 2.45 lakh rural households in Nepal. 

Adarsha Laghuitta is a “D” class Province Level microfinance institution with the approval of operation in only Bagmati province through 13 districts. It was incorporated on May 23, 2018, and commenced operations in January 2019. It is promoted by institutions and individuals from different backgrounds and is primarily engaged in providing microfinance loans based on the Joint Liability Group (JLG) model with each group consisting of a minimum of five members.

Adarsha Laghubitta had issued an IPO last year in which 6,261 applicants received shares of ADLB.

Deprosc Laghubitta had initially signed an agreement to acquire Dhading based Nadep Laghubitta on Poush 15, 2077. However, the disagreement in share ratio and employee structuring had led the companies to ditch the merger agreement.