Yeti Development Bank & Mahalaxmi Bikas Bank to merge; share swap likely to be 1:1

Yeti Development Bank Limited (YETI) and Mahalaxmi Bikas Bank Limited (MLBL) are going to sign an agreement for merger today. After the merger, it will be the largest national level development bank in Nepal in terms of paid up capital. Earlier, Mahalaxmi Bikas Bank was rumored to be acquired by Sunrise Bank Limited. As per an official of Yeti Development Bank, the share swap ratio for the merger will most likely be fixed at 1:1. As such, the paid up capital of the merged entity will reach Rs 2.62 arba. “Both development banks will sign a Memorandum of Understanding (MOU) today. The name of the merged entity has not been fixed and will be decided after a BOD meeting”, said the official. Mahalaxmi Bikas Bank Limited was formed after merger of Mahalaxmi Finance, Malika Bikas Bank and Siddhartha Finance on September 9, 2016. Likewise, Manakamana Development Bank, Yeti Finance and Valley Finance had merged to form Yeti Development Bank Limited on July 15, 2013. Mahalaxmi Bikas Bank has proposed 8% bonus share from the profits it earned in FY 2072/73 and Yeti Development Bank's 50% right share is in SEBON pipeline.