Trading of Deva Bikas Bank halted in NEPSE after inking agreement for acquisition with Kumari Bank; Capital of joint entity to cross Rs 12 arba

Nepal Stock Exchange (NEPSE) has halted the trading of Deva Bikas Bank (DBBL) from Magh 02, 2076.

According to the notice published by NEPSE, the bank has signed an agreement with Kumari Bank (KBL) for acquisition, following which the trading has been halted in NEPSE. The agreement was signed on Magh 1, 2076 in Kathmandu by BoDs of both the institutions Mr. Krishna Prasad Gyawali and Mr. Bharat Bahadur Hamal.

Following the acquisition process, the bank will have a paid-up capital of more than Rs 12.50 arba, deposit collection figure of Rs 120 arba, loan disbursement of Rs 105 arba, more than 200 branches, as per the media statement circulated by the bank. The paid-up capital of the joint entity is subject to the swap ratio that the banks will agree on.

KBL is Class A commercial bank with a paid-up capital of Rs 9.55 arba as of the first quarter of FY 2076/77 along with reserves of Rs 2.24 arba. Similarly, DBBL is a Class B National level development bank with paid-up capital and reserves of Rs.3.17 arba and Rs.38.09 crore respectively.