Shangri-La & Cosmos Development Bank to start joint transaction as Shangrila Dev. Bank from Asadh 30

Nepal Rastra Bank has provided final approval for the acquisition of Cosmos Development Bank Limited (CSDBL) by Shangri-La Development Bank Limited (SADBL) on Asadh 20, 2074. The joint transaction of both companies will start from Ashad 30, 2074. The new entity will be named as “Shangri-La Development Bank Limited” and will start the integrated business as national level development bank. Shangrila Development Bank has acquired Cosmos Development Bank in a share swap ratio of 1:1 from its AGM held on Jestha 19, 2074. The transaction of both Shangri-La Development Bank and Cosmos Development Bank will remain closed on Ashad 29, 2074 for the process of system integration and data migration to start joint operation. SADBL had also endorsed 80% right share in its AGM agenda after acquisition process. Since the acquisition process with NCDB has been cancelled, the paid up capital of Shangri-La after acquiring Cosmos Development Bank will be Rs 1.35 arba. On that capital, the company will issue 80% right share i.e Rs 1.08 arba, after which SADBL’s paid up will reach Rs 2.44 arba. As per NRB’s monetary policy, SADBL should increase its paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74. After the issuance of 80% right share, the bank should issue a further Rs 6 crore capital increment. Cosmos Development Bank has earned net profit of Rs 1.72 crore in third quarter of the fiscal year 2073/74. It has a paid up capital of Rs 10.06 crore.