NRB shows green light for Global IME - Commerz and Trust merger

ShareSansar, December 4:

Nepal Rastra Bank has formally endorsed the plan of Global IME Bank and Commerz and Trust Bank to merge.

The central bank has also issued letter of intent (LOI) to Civil Bank Limited, Axis Development Bank and Civil Merchant finance company for their merger, but it has scrapped the merger process between Kist Bank and Vibor Bikas Bank.

A meeting of the central bank BoD took the decisions on Monday.

The two commercial banks –Global IME and Commerz and Trust—had inked a deal for the merger on November 10 at a swap ration of 100:65. This is the second merger between the commercial banks in the country. The first commercial banks to merge were NIC and Bank of Asia.

Now that the central bank has issued the LOI to these commercial banks, they have to finalize the merger within six months.
First of all, the BoD of both the banks must submit a merger plan to the central bank and make necessary internal arrangement for the new bank to be formed after the merger.

After everything is put in place, both the banks must again formally apply for merger.

The same rules apply for mergers of other BFIs, too.