Kathmandu. The merger process between Nepal Investment Bank and Himalayan Bank has reached its final stage. Chairman of Nepal Investment Bank Prithvi Bahadur Pandey informed that due diligence audit (DDA) of both the banks has been prepared.

 Though the banks are preparing to merge, the name and share swap ratio will be decided only after the board meeting, Pandey said. The name of the new bank will maintain the identity of both the banks. After the merger, the name of the bank may be Himalayan Investment Bank.

As the status of Nepal Investment Bank and Himalayan Bank is almost the same in the market, the share swap ratio is estimated to be 1: 1. However, the decision has not been made. ‘As the DDA report of both the banks has come, the management structure will be agreed after the board meeting. Ashok Rana will be the chief executive officer (CEO) of the bank after the merger of the two banks, while Prithvi Bahadur Pandey is set to become the chairman of the bank.

After the merger, the bank's paid-up capital will reach Rs 25 billion and the reserve fund will reach more than Rs 16.25 billion. After the merger of these two banks, it will become the largest bank in Nepal. Nepal Rastra Bank has put forward a policy to encourage mergers / acquisitions with the objective of making the financial sector strong and capable. Following the same policy, both the banks have started preparations for merger.