NRB notifies BFIs yet to meet capital requirement to be forced for M&A; BFIs choosing M&A to be given priority for class upgradation

Thu, Jan 3, 2019 8:45 PM on Latest,
NRB notifi...

A circular published by NRB states that development banks and finance companies going for Merger and Acquisition (M&A) to meet the capital requirement will be given priority for class upgradation. In addition to that, companies who are unable to meet the minimum capital requirement within the stipulated time frame will be directed towards forceful merger.

The minimum capital requirement for National and Regional level BFIs are as follows:
National level development bank: Rs 2.50 arba
National level finance companies: Rs 80 crore
Regional level development bank: Rs 1.20 arba
Regional level finance companies: Rs 50 crore

Similarly, regional level development banks and finance companies looking to upgrade through M&A should fulfill all the procedural requirements and their paid-up capital and reserve fund must be as mandated by the NRB. They also should submit the required application to Company Registrar's office, SEBON and NEPSE.