Big Merger Himalayan and Nepal Investment Bank, Swap Ratio 1: 1

Dec Wed 2020 11:36:48

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Big Merger Himalayan and Nepal Investment Bank, Swap Ratio 1: 1

After the merger, the Bank's chairman Prithvi Bahadur Pandey,  CEO Ashok Rana and Jyoti Pandey Deputy CEO

Kathmandu. Nepal Investment Bank and Himalayan Bank have started preparations for the merger. Both the banks are preparing to merge if they are satisfied with the initial due diligence audit (DDA report) of the banks.

Among the banks preparing to merge, Himalaya Bank has a paid up capital of Rs 9.37 billion, while Nepal Investment Bank has a paid up capital of Rs 14.24 billion.

According to sources, the swap ratio will be 1: 1. The two banks are preparing to merge by establishing close discussions and contacts with the National Bank.

After the merger of these two banks, Nepal will become the largest bank of 23.62 billion. Earlier, the paid-up capital of Janata Bank and Global IME Bank, which were merged, was only Rs 18.97 billion.

According to NRB sources, both the banks are getting approval to pay 15 percent dividend by the end of this week.

After the merger, the bank will have Prithvi Bahadur Pandey as chairman and Ashok Rana as CEO and Jyoti Pandey as deputy CEO.

After the merger, Nepal Himalayan Investment Bank will become the largest bank in the country. As per the unrevised financial statement of mid-October, the paid up capital of Nepal Investment Bank is Rs. 14.24 billion 89.55 million. The reserve of the bank is 12 billion 154 million 21 thousand. Similarly, Nepal Investment Bank has a deposit of Rs. 184.73 billion. The loan is Rs. 139.2 billion.

Himalayan Bank has a paid up capital of Rs 9.37 billion as of mid-October. The reserves stood at Rs 6.87 billion. Similarly, deposits stood at Rs 128 billion and loans at Rs 99.38 billion. When the bank merges in the ratio of 1: 1, it will be the largest in terms of capital, reserves, deposits and loans.