Kathmandu, Nepal Rastra Bank has passed a decision to issue Letter of Interest (LOI) to the merger process of Nepal Investment Bank Limited and Himalayan Bank Limited.

A Memorandum of Understanding (MoU) was signed between the two banks on Thursday, April 12 to merge. Shares of both the banks are currently listed on Nepse. As an investment merger agreement has been signed between Nepal Investment Bank Limited and Himalayan Bank Limited. Shares of both the banks have been suspended since Friday. The agreement has been signed.

Both the banks are engaged in preparations for integrated business from 2078 BS.

As both the banks will be merged in a swap ratio of 1: 1, the shareholders of both the banks will get the same number of shares as the shares of the new bank. After the merger of these two banks, it will become the bank with the highest paid-up capital in Nepal. At present, the paid up capital of Nepal Investment Bank is Rs. 16.26 billion and the paid up capital of Himalayan Bank is Rs. 10.68 billion. After the merger of the two banks, the paid up capital of the bank will reach Rs. 26.94 billion.