NRB Gives In-Principle Approval for the Merger of National Microfinance Laghubita and Summit Laghubitta

National Microfinance Laghubitta Bittiya Sanstha Limited (NMFBS) and Summit Laghubitta Bittiya Sanstha Limited (SMFDB) signed a Memorandum of Understanding (MoU) for the merger on Ashwin 26, 2079. Likewise, the companies have also received in-principle approval for the merger in accordance with the letter dated Poush 07, 2079, as per Section 70 of the Bank and Financial Institution Act 2073 and the "Bank and Financial Institution Merger Regulations 2073 (Fifth Amendment 2079).

For the merger between NMFBS and SMFDB, the share swap ratio of 100:82 has been fixed i.e., for every 100 units of Summit’s shares, the shareholders will get 82-unit shares of National Micro finance.

The current paid-up capital of National microfinance is Rs.58.66 Crores, whereas the paid-up capital of Summit Laghubitta is Rs. 49.40 Crores. Hence, the revamped institution which will be known as National Summit Microfinance will have a paid-up capital of over Rs 1 arba with more than 2 lakh customers, a credit portfolio of over Rs 17 arba, and will have a presence in 74 districts of the nation with 204 branches.

As of writing, the last trading price (LTP) of National Microfinance and Summit Microfinance as of Jan 1, 2023, is, is Rs. 2000 and Rs. 1153, respectively.