Reliable, NCDB and Shubhalaxmi to start integrated business from April 16

ShareSansar, April 11:

Reliable Finance Limited, Nepal Consumer Development Bank Limited and Shubhalaxmi Finance Limited, which have merged to form Reliable Development Bank Limited, will start the integrated business from April 16.

The merged entity will be headquartered at the registered office of Reliable Finance at Bag Durbar, Sundhara in Kathmandu, according to a joint notice issued by the BFIs.

The central bank had on April 4 endorsed the final merger deal after the separate special Annual General Meetings of the three BFIs formally endorse their merger on February 17.

The special AGM had endorsed the Due Diligence Audit for the merger that has been determined through the interest pulling method at a swap ratio of 112.70, 89 and 94 for Reliable, Shubhalaxmi and NCDB, respectively.

The merger has result in a class ‘B’ development bank of the national level with a paid-up capital of Rs 68.27 crore.

Until the next AGM of the merged company, an interim Board of Directors comprising three promoters of Reliable and one each of Shubhalaxmi and NCDB, and a public director each of Shubhalaxmi and NCDB will be appointed.