Swap ratio of NMB: Bhrikuti: PBSL: PFIL at 100: 87: 67: 43; waiting for NRB’s approval for joint operation

ShareSansar June 23:

The Special General Meeting of NMB Bank held on Jestha 24, 2072 approved the proposal to undergo merger with Pathibhara Bikash Bank Limited, Bhrikuti Development Bank Limited and Prudential Finance Company Limited.

The meeting also endorsed the swap ratio of NMB: Bhrikuti: Pathivara: Prudential which stands at 100: 87.63: 67.56: 43.17 respectively. The name NMB Bank will be retained following the merger.

Pramod Dahal, Head Compliance and Operational Risk of NMB Bank said, “We have planned to start the joint operation of the merged banks from 2nd Shrawan, 2072 but it depends on NRB’s approval.

The bank aims to increase its presence in eastern and western development regions by undergoing merger with Pathibhara and Bhrikuti, according to the statement. The assembly also decided to speed up the merger process with Clean Energy Development Bank.

The mergers will turn NMB into one of the largest banks in Nepal in terms of paid-up capital. Currently, NMB’s paid-up capital stands at Rs 2 billion while that of Prudential is Rs 483 million, Bhrikuti’s paid-up capital is Rs 423.78 million and Pathibhara has a paid-up capital of Rs 115 million also, Clean Energy has a paid-up capital of Rs 1.14 billion.

Its total capital and reserve will build to Rs 6 billion. Similarly, total deposits and loans will increase to Rs 43.48 billion and Rs 34.64 billion respectively.