SGM of Sewa & Kamana Bikas Bank today; to endorse merger with swap ratio 1:1

Sewa Bikas Bank Limited and Kamana Bikas Bank Limited are going to conduct their separate Special General Meetings (SGM) today (Jestha 25, 2074). Sewa is conducting its SGM at Amrapali Cottage and Restaurant, Butwal while Kamana Bikas Bank is holding  its SGM at Hotel Pokhara Grand at 9 AM. Both the SGMs have the following merger-related agendas:

1. To endorse the final agreement for merger
2. To endorse the Due Diligence Audit (DDA) report and approve the share swap ratio of 1:1 for merger
3. To keep the name of merged entity as “Kamana Sewa Bikas Bank” and transfer its central office to Kathmandu
4. To amend their Memorandum of Association and Article of Association as directed by regulatory authorities
5. To provide authority to the BOD for agreement of merger/acquisition with other suitable BFIs

Trading of both the development banks have been suspended in NEPSE since Mangsir 12, 2073 following the merger announcement. Only those shareholders having shares traded until Mangsir 9, 2074 and registered before Jestha 19, 2074 are eligible for participation in the SGMs. After their merger, the merged entity will be named “Kamana Sewa Bikas Bank Limited” and will have a paid up capital of Rs 2.06 arba. Kamana Bikas Bank Limited is also going to issue 30% right share from Ashad 11 to Shrawan 15, 2074. As per NRB’s directive for all national level development banks to increase their paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74, the merged bank will need to issue a further capital hike of around Rs 44 crore (around 21.50%).