Kathmandu. About a dozen commercial banks are preparing to merge. At present, 10 commercial banks have entered into a merger agreement to merge with each other. So far, Nepal Investment and Mega Bank, Kumari Bank and NCC Bank, Global IME and Bank of Kathmandu, Himalayan Bank and Civil Bank, Prabhu Bank and Century Bank have signed merger agreements.

These banks, which have entered into a merger agreement, are working for integrated business. Banks are preparing to start integrated business by the end of this year. Nepal Rastra Bank (NRB) has also said that banks that have entered into a merger agreement are attracted to start integrated transactions by the end of January.

Nepal Investment Bank and Mega Bank : The final agreement of the merger process between Nepal Investment Bank and Mega Bank has also been approved. Both these banks had agreed to merge with each other on May 27th. It has been agreed that the swap ratio of Investment Bank and Mega Bank will be 100:90. This means Mega Bank will get 90 shares equal to 100 shares of Nepal Investment Bank.

NRB, The National Bank has also given theoretical approval to these two banks for the merger on June 22. It is said that the integrated business of both these banks will be completed by the end of January. After the merger, the name of the bank will be Nepal Investment Mega Bank and Prithvi Bahadur Pandey will be the chairman of the bank. An agreement has been reached that Jyotiprakash Pandey will be the Chief Executive Officer (CEO) of the bank. After the merger of Nepal Investment Bank and Mega Bank, the paid-up capital of the bank will reach 32 billion 81 crore 59 lakh 56 thousand rupees.

Kumari Bank and NCC: On October 10th, an agreement was reached between Nepal Credit and Commerce (NCC) and Kumari Bank to merge. It has been agreed that the share swap ratio will be equal to one.

After the merger, the name of the bank will be Kumari Bank, while Rameshraj Aryal (currently CEO of NCC Bank) will be the chief executive officer of the bank and Ramchandra Khanal will be the senior chief executive officer. In the board of directors of the bank, 3/3 members will be from two banks. It is said that one person will be nominated in the committee and the chairman will be elected from 7 directors. After the merger of these two banks, the paid-up capital will be 25 billion 85 million rupees. After the merger, the total capital of the bank will be Rs 37 billion 65 crore. It is said that both these banks will start integrated business by the end of January. Bank sources said that necessary procedures for integrated transactions have been initiated.

Global IME Bank and BOK: Global IME Bank and Bank of Kathmandu reached an initial agreement on June 2. In order to merge these two banks, the meeting of the board of directors of the bank held on 24th of November decided that they will merge with each other on equal basis i.e. 1:1 ratio.

Both these banks had signed an agreement on June 2 for the purpose of merging into one. For the purpose of merging these banks with each other, the share exchange ratio recommended by the appraiser after evaluating the assets, liabilities and transactions and also evaluating other various aspects, the Bank of Kathmandu has decided to get 100 shares of Global IME Bank as 100 shares. After both mergers, the paid-up capital will reach 34 billion 41 crore rupees. It is said that the bank is currently preparing for integrated business.

Himalayan and Civil Bank : Himalayan Bank had entered into a preliminary agreement on June 29 to acquire Civil Bank. The agreement was signed on behalf of Himalayan Bank by Chairman Prachanda Bahadur Shrestha and Chairman Pratap Jung Pandey on behalf of Civil Bank. Himalayan Bank is about to acquire Civil Bank in the share exchange ratio (swap ratio) of 100:81. After the merger, the name of the bank will remain Himalayan and the board of directors will also remain the same as the present Himalayan Bank. It has been agreed that Himalayan Bank's Ashok Rana will be the CEO, while Civil Bank's Sunil Kumar Pokhrel will be the Senior Deputy CEO. It is said that the bank has started the necessary work for the integrated business and will start within January.

Prabhu Bank and Century Bank: A merger agreement was signed between Prabhu Bank and Century Commercial Bank on 15th July last. The agreement was signed by Ramesh Singh Khadka on behalf of Prabhu Bank and Man Bahadur Rai on behalf of Century Bank. Both the banks have agreed to merge in the ratio of 1:1. After the merger, the business will be integrated under the name of Prabhu Bank. After the merger, Prabhu Bank's Ashok Sherchan will be the CEO of the bank and Century Bank's CEO Manoj Neupane will be the deputy CEO. The bank has also said that it has intensified the necessary process for integrated transactions within January itself.