NRB Grants In-Principle Consent for the Merger Between Naya Sarathi Laghubitta & Vijaya Laghubitta

Fri, Mar 17, 2023 11:48 AM on Latest, Merger/Acquistion,

Nepal Rastra Bank has given in-principle consent to the merger of Naya Sarathi Laghubitta Bittiya Sanstha Limited (NSLB) and Vijaya Laghubitta Bittiya Sanstha Limited (VLBS).

In relation to the above, based on the agreement between NSLB and VLBS regarding the merger, Nepal Rastra Bank has given in-principle consent for the merger according to the Merger and Acquisition Regulations, 2073 (Fifth Amendment 2079).

Both institutions must convene their respective general meetings within three months of receiving theoretical consent, approve the special resolution relating to the merger at those meetings, and then submit a joint application to the NRB for final approval.

According to the instructions of NRB, both institutions' integrated capital ratios should be adequate when they submit to NRB for the merger's final approval.

The paid-up capital of NSLB and VLBS as of the second quarter of FY 2078/79 is Rs. 30.33 Crores and Rs. 31.99 Crores, respectively.

Naya Sarathi also proposed a 20% dividend for the fiscal year 2078/79. Whereas, VLBS proposed a dividend of  21.0526% dividend worth Rs. 6.73 Crores for the fiscal year 2078/79. The book closure date of both the companies is yet to be announced.