Om Dev. Bank & Manaslu Dev. Bank to start joint transaction from Ashad 2 as Om Dev. Bank; share swap ratio fixed at 100:92

Nepal Rastra Bank has provided final approval for the merger of Om Development Bank Limited (ODBL) and Manaslu Bikas Bank Limited (MSBBL) on Jestha 17, 2074. The joint transaction of both companies will start from Ashad 2, 2074. The new entity will be named as “Om Development bank Limited” and will start the integrated business as national level development bank. After the acquisition, the registered office of the bank will be at Lekhnath-4, Pokhara. Om Development Bank and Manaslu Development had undergone into merger process on Ashwin 21, 2073. The share swap ratio as per the DDA report has been fixed for 100:92 (shareholders having 100 shares of Manaslu will get 92 shares of Om Development Bank). Om Development Bank has paid-up capital of Rs 1.36 arba. It has earned net profit of Rs 26.57 crore in the third quarter of the last fiscal year 20723/74 as per unaudited report. Similarly, Manaslu Bikas Bank has paid-up capital of Rs 30.83 crore. The bank has earned net profit of Rs 4.57 crore in the third quarter of the fiscal year 2073/74 as per unaudited report. After the merger, the paid up capital of the merged entity will reach to Rs 1.64 arba. The bank will issue 10:3 (30%) right share to its shareholders after completion of merger. After adjustment of right share its paid up capital will reach Rs 2.13 arba. As per NRB's directive for all national level development banks, the bank should increase its paid up capital to Rs 2.50 arba by the end of FY 2073/74.