Nepal Ratra Bank provides final approval to merger of Tinau Mission and Nepal Community Development Bank; Gives LOI to merger of Manakamana and Smart Laghubitta

Nepal Rastra Bank (NRB) has provided the approval to 4 Financial Institutions to move ahead with merger and acquisition.

Tinau Mission Development Bank (TMDBL) and Nepal Community Development Bank (NCDB)

NRB has provided final approval for the acquisition of NCDB by TMDBL. The two development banks had started the talks of acquisition from Jestha 07, 2076 by signing the first agreement. Both the banks have passed the acquisition proposal in the recent Special General Meeting.

According to the agenda of the SGM, the swap ratio was fixed at 1:1 based on the Due Diligence Audit.

Currently, the paid-up capital of TMDBL and NCDB is Rs 1.14 arba and Rs 53.16 crore respectively. After the completion of the acquisition, the combined paid-up capital will stand at Rs 1.67 arba making them a national level development bank.

Manakamana Laghubitta and Smart Laghubitta Bittiya Sanstha

NRB has provided a Letter of Intent (LOI), initial approval, to the merger of Manakamana Laghubitta and Smart Laghubitta.

The two micro finances had signed the MoU on Bhadra 21, 2076. Manakamana Laghubitta with its 10 working districts has paid-up value of Rs 6.82 crore while Smart with Rs 1.40 crore. Similarly, Manakamana has 16 branches while Smart has 7 branches under its network.

The newly formed entity will be named as Manakamana Smart Laghubitta with Manakamana’s main office as the main office of the new microfinance. The merged entity will have chairman and CEO from present-day Manakamana Microfinance.

Similarly, the merged board will have 33 members and the merger process will conclude within 4 months of receiving approval from NRB, as per the agreement. The institutions have agreed to merge in a share swap ratio of 1:1.