Kathmandu. Himalayan Bank Limited has signed a Memorandum of Understanding (MoU) to acquire Civil Bank Limited. The MoU was signed by Prachanda Bahadur Shrestha, Chairman of Himalayan Bank and Pratap Jung Pandey, Chairman of Civil Bank. A memorandum of understanding has been signed between the two banks following the merger / acquisition policy put forward by Nepal Rastra Bank with the objective of making Nepal's financial sector strong and capable.

After the acquisition, the name of the bank will be Himalayan Bank Limited, the board of directors will be Himalayan Bank and the chairman of the board of directors will be Prachanda Bahadur Shrestha. Similarly, Ashok Shamsher Rana will be the Chief Executive Officer.

Himalayan Bank has reached a preliminary agreement on a 100: 81 share swap ratio to acquire Civil Bank. At present, the paid up capital of Himalayan Bank is 12.96 billion and that of Civil Bank is 9.07 billion. Similarly, the reserve fund is Rs 8.3 billion of Himalayan Bank and Rs 2.91 billion of Civil Bank Limited. On the credit side, Himalayan Bank has Rs 158 billion and Civil Bank has Rs 86.74 billion, while on the deposit side, Himalayan Bank has Rs 172 billion and Civil Bank has Rs 93.33 billion.

The total number of branches of Himalayan Bank will reach 189 after the acquisition of Civil Bank. This step will lead to significant progress in capital increase, scope of work and capacity of the organization. In addition, as a strong and capable bank of the country, this institution will be able to establish itself in the financial market, provide more excellent services and facilities to the customers and give good returns to the investors.