Pokhara based City Development & Om Finance signed MOU for merger; merged entity will be named Om Development Bank
Wed, Jul 15, 2015 12:00 AM on Others,
ShareSansar July 15:
Trading of City Development Bank Limited (CDBL) and Om Finance Limited (OFL) has been suspended from today following the merger process between the Pokhara based financial institutions.
The two BFIs on July 14 (yesterday) have signed a Memorandum of Understanding (MOU) for the merger to form a National level development bank, which will be named Om Development Bank Limited. Swap ratio of the merged entities will be fixed only after Due Diligence Audit of the companies.
Mr. Bishwo Mohan Adhikari, Chief Executive Officer of City Development Bank said, “The reason behind the merger is to increase the Paid up capital of the Bank to meet the capital adequacy ratio requirement set by NRB and also to be upgraded to National Level Bank.”
“Most likely the integrated business of the merged entity will start within six months”, added Adhikari.
With the head office in Pokhara, CDBL has been operating its services from Bagar, Amarsing, Hemja, Bhimad, Bhotewodat, Damauli, Nagdanda, Turture, Manang, Shishuwa, Baglung, NarayanGhad and Kusmisera, Lamachour, Narayanghat and Bandipur.
City Development Bank has a paid-up capital of Rs 46,81,60,000. The bank had received deposits up to Rs 448 crore and had 377 crore in loans and advances with operating profit of Rs 12.72 crore till Chaitra 2071 BS.
Om Finance Limited (OFL) head office is located at Newroad, Pokhara. Its branches are located in Bhairavtole-Pokhara, Damauli- Tanahu, Besisahar- Lamjung, Bagdurbar, Maharajgunj, Lalitpur. Kumaripati and Bhaktapur. The CEO of the finance company is Mr. Buddhi Malla.
Om Finance has earned an operating profit of Rs 12 crore 59 lakh by the end of third quarter of the current fiscal year. Om Finance has a paid up capital of Rs 38.92 crore. The finance has collected Rs 4 arba 37 crore in deposits and its loan and advances stood at Rs 3 arba 73 crore till Chaitra 2071 BS.
The last trading price of CDBL Stood at Rs 325 and of OFL stood at Rs 320 as on July 14 (yesterday).
Last Year, OM Finance (OFL) and Kamana Bikas Bank (KMBL) had signed a Memorandum of Understanding (MOU) for the merger to form a national level development bank which was terminated later.
