Shangrila Development Bank signs initial agreement to acquire Cosmos and Nepal Community Development Bank

Shangrila Development Bank has signed an understanding with Cosmos Development Bank (1 district level development bank) and Nepal Community Development Bank (1-3 district level development bank) for acquisition. Organizing separate events with both development Banks, Mr. Surendra Bahadur Bhariju, chairman of Shangrila Development Bank, Mr. Pashupati Ghimire, chairman of Nepal Community Development Bank, and Dr. Teknath Dhakal, chairman of Cosmos Development Bank signed the agreement. Issuing a press statement, Shangrila Development Bank said that the bank has started the process of requesting approval for the acquistion from Nepal Rastra Bank. After issuing bonus shares of all the banks and acquisition, the paid up capital of Shangrila Development Bank will reach Rs. 1 arba 57 crore. The bank will further issue stock dividend worth at least Rs. 30 crore, which will increase its paid up capital to Rs. 1.87 arba. Based on NRB's directive, the development bank has to increase its paid up capital to Rs. 2.5 arba, which the bank aims to reach by merger/acquisition or by issuing right shares worth Rs. 63 crore, said Mr. Dinesh Thakali, CEO of the development bank. After the acquisition, Shangrila Development Bank will have a deposit base of Rs. 13.36 arba and floated loans worth Rs. 11.70 arba. The total branches will reach 43, with 4 extension counters and 6 microfinance branches.