Two significant mergers have received in-principle approval from Nepal Rastra Bank (NRB). The merger of Nepal Investment Bank Limited (NIB) -Mega Bank Nepal Limited (MEGA) and Global IME Bank Limited (GBIME) - Bank of Kathmandu Limited (BOKL) was approved by NRB during the Board of Directors meeting held on last Wednesday.
NIB and MEGA had agreed to merge on Jestha 27. Similarly, GBIME and BOK had agreed to merge on Ashad 2, 2079.
The name of the merged institution will be Nepal Investment Mega Bank. It has been agreed that Mr Prithvi Bahadur Pandey and Jyoti Pandey will be the chairman and CEO of Nepal Investment Mega Bank. Nepal Investment Bank and Mega Bank are about to merge in a ratio of 100:90.
The paid-up capital of NIB at the present is Rs. 18.3 Arba. Meanwhile, the paid-up capital of MEGA is Rs. 16.1 Arba. After the merger, the total paid-up capital of the newly merged company will be Rs. 32.81 Arba.
Immediately after the joint operation, there will be 295 branches. The bank will also have 271 ATM terminals, 46 extension counters, and 118 branchless banking points. Also, there will be 10 revenue collection counters in the bank.
Coming toward GBIME and BOK, Global IME BOK Limited has been agreed upon as the name of the new bank that will be formed as a result of the merger. An agreement has been reached to keep the swap ratio at 1:1 so that it can be altered if the swap ratio advocated by GBIME and BOKL is found to be insufficient. Also, CA Ratnaraj Bajracharya will be the merged bank's, Chief Executive Officer.
Following their merger, the core capital of the bank will be Rs. 52.29 Arba. Likewise, the merged company will have a total paid-up capital of Rs. 34.41 Arba, surpassing the MEGA and NIB's total paid-up capital of Rs. 32.81 Arba.
The total branches of the merged entity will be 385. Also, the number of ATMs, branchless banking, and the extended counter will be 367, 275, and 61 respectively. There will be 3 contact offices internationally.
The merged company, Global IME BOK Limited, will be in operation as a result of previous mergers with 21 banks and financial institutions, which includes 5 ‘A-class’ Commercial banks, 10 Development banks, and 6 Finance Companies.