Suryodaya Laghubitta and Trilok Laghubitta to go for merger; Joint entity to have 63 branches

Suryodaya Laghubitta Bittiya Sanstha Limited (SLBS) and Trilok Laghubitta Bittiya Sanstha Limited (TLBSL) have agreed to go for merger and acquisition (M&A).

Ananta Kumar Shrestha, Chairman of SLBS and Lekhnath Khaniya, Chairman of TLBSL signed the merger agreement yesterday.

Currently, SLBS covers 23 districts and TLBSL covers 10 districts around the country. After the merger, the number of branches will reach 63 with 54 thousands members. SLBS' president said that, the main motive of merger is to make institution more secure, healthy, effective and efficient to promote the economy of country.

SLBS records net profit of Rs 2.65 Crore as per third quarter of FY 2075/76 with paid-up capital of Rs 10.79 Crore. Its annualized Earning per share (EPS) and net worth per share are Rs 32.76 and Rs 164.82 respectively. Similarly, net profit of TLBSL is Rs 31.19 lakh as per Q3. And its paid-up capital is Rs 3.09 crore. Therefore SWAP ratio will be determined on the basis of assets and liabilities evaluation report/ Due Diligence Audit (DDA). 

After merger, Lekhnath Khaniya, current president of TLBLS will preside the combined organization. Moksha Prashad Pangeni from SLBS will work in the capacity of Chief Executive Officer (CEO) and Rajendra Neupane from TLBSL will work as Deputy CEO. The name of the microfinance will be Suryodaya Laghubitta Bittiya Sanstha Limited and the head office will be located at Pokhara in Gandaki Province.