NRB merger nod to six FIs

KATHMANDU, DEC 18 -

The Nepal Rastra Bank (NRB) board on Monday decided to give letter of intent (LoI) to six financial institutions (FI) to merge into three.

Those getting LoI are Kathmandu-based Shiddhartha Development Bank and Birgunj-based Public Development Bank, Kathmandu-based NDEP Development Bank and Kathmandu-based Hama Merchant and Finance and Kavre-based Araniko Development Bank and Dolakha-based Surya Development Bank.

Shiddhartha, which has a paid-up capital of Rs 640 million compared to Public’s Rs 151 million, stands to be in strong financial health after the merge r and remain a national level development bank. Public is a regional development bank.

Likewise, NDEP’s paid up capital is Rs 582 million while its partner has the capital base of Rs 200 million. The combined entity will be a national level development bank after their merge r.

On the other hand, the outcome of the merge r between Araniko, with paid up capital of Rs 200 million, and

Surya (Rs 15 million) will be a national level finance company.

Source: The Kathmandu Post