Saptakoshi and Kabeli Bikas Bank on final stages of merger; Planning to start joint operation from the start of FY 2076/77

Saptakoshi Development Bank (SKDBL) and Kabeli Bikas Bank (KEBL) are preparing for a merger with an aim to start joint operation from Shrawan 01, 2076 as Saptakoshi Development Bank. After this merger, they are planning to be the largest Development Bank in Province No. 1.

The merger agreement was signed by Mr. Taranath Niraula, Chairman of Saptakoshi Development Bank and Mr. Gopal Prasad Kafle, Chairman of Kabeli Bikas Bank. After the successful merger, the head office of the bank will be at Dhankuta and the Corporate office will be at Biratnagar.

Saptakoshi Development Bank

It was established in 2069 as regional level development bank operating in Morang, Illam, and Pachthar districts. However, now it has expanded to Jhapa and Sunsari districts.
As of now, the paid-up capital of Saptakoshi is Rs 52.37 crore with 16 branches.

Kabeli Bikas Bank

It was established in 2065 also as a regional development bank operation in Dhankuta and Therathum districts. Prior to this, Kabeli had merged with Mount Makalu Bikas Bank.
As of now, the paid-up capital of Kabeli stands at Rs 28.43 crore with 7 branches in total.

After the merger, the total paid-up capital of the merged entity will be Rs 80.8 crore. So even after the merger, they won't be able to meet the minimum paid-up capital requirement of Rs 1.20 arba as mandated by the NRB.

Therefore, the bank will be issuing bonus and right shares to meet the requirement.The bank has also aimed to reach all local levels of Province 1 within 2 years of the merger.

Similarly, the merged entity will have a total of 422 promoter shareholders and around 28 thousand ordinary shareholders.