Kathmandu. Nepal Investment Bank and Mega Bank Nepal will be merged. The merger agreement was signed between the two banks on Friday. After the failure of the merger agreement with Himalayan Bank, Nepal Investment Bank is about to merge with Mega Bank.

Shares of Nepal Investment Bank, which was closed due to a long-running merger agreement with Himalayan Bank, will be closed again from Monday. At the same time, the share trading of Mega Bank will also be blocked for merger purposes.

As per the agreement reached on Friday, the name of the bank to be formed after the merger will be 'Nepal Investment Mega Bank'. It has been agreed that the Chairman and the Chief Executive Officer will be represented by the Investment Bank. The other operators will be represented by both the banks. A preliminary agreement has been reached between the two banks to exchange 100 to 90 shares. Banks plan to complete the merger process and conduct integrated transactions within the next six months.

At present the paid up capital of the Investment Bank is Rs. 18.30 billion and the paid up capital of Mega Bank Nepal is Rs. 16.12 billion. If the merger is done in the swap of 100:90, the paid up capital of the bank to be formed after the merger will be Rs. 32 billion. By the third quarter of the current Fiscal Year, Mega Bank's distributable profit stood at Rs. 960 million while Nepal Investment Bank's Rs. 470 million.

Currently, the reserve fund of Mega Bank is Rs. 14 billion and Nepal Investment Bank's Rs. 5 billion. Mega Bank's loan to invest Rs. 150 billion while Nepal Investment Bank's Rs. More than Rs 173 billion. On the deposit side, Nepal Investment Bank's Rs. Rs. More than Rs. 182 billion and Mega Bank Nepal's Rs. 152 billion.