Kathmandu: Global IME Bank Limited and Bank of Kathmandu Limited have signed the final memorandum of understanding (MoU) on merger with each-other today. With the merger of both banks, it will be the first and only commercial bank in Nepal with a paid-up capital of 57 billion.
The final signed was signed and exchanged between Chandra Dhakal, the chairman of Global IME Bank and Ajay Shrestha, the chairman of Bank of Kathmandu. Earlier, the board of directors of both banks has approved the share swap ratio of 1:1 determined on the basis of the evaluation report of movable/immovable assets, liabilities and transactions received from the appraiser for the purpose of merger.
After the merger, the total capital of the bank is Rs. 57 billion, paid up capital Rs. 35.77 billion, total deposits of Rs. 400 billion, total loan of Rs. 379 billion. The new bank formed after the merger will become the largest bank in Nepal in terms of total assets, paid-up capital and business volume. In addition, both banks have earned a net profit of more than Rs.1.47 billion rupees till the end of first quarter of current fiscal year.
The name of the new bank will be Global IME BOK Limited and the BODs will consist of 5 people including Chairman Chandra Prasad Dhakal on behalf of Global IME Bank and 2 people on behalf of Bank of Kathmandu. Likewise, Ratnaraj Bajracharya, the Chief Executive Officer of Global IME Bank, will remain as the Bank’s Chief Executive Officer.
Global IME Bank will have a record of merging a total of 21 banks and financial institutions including BOK.
The merger will result the largest branch network in the country with a total of 396 branch offices, 368 ATMs, 275 branchless banking services, 61 extended branch offices, 3 foreign contact offices, more than 4 million customers and many other financial indicators. .
Speaking at the signing event, the Chairmen of the bank’s BODs have expressed their joint commitment that the bank will bring new opportunities in the financial sector and take into account the interests of customers, shareholders, and all those directly or indirectly related to the bank.
Radhesh Pant, the coordinator of the joint merger committee, said that the merger committee works with the investors, employees and the entire bank at the center and said that only a big bank can give sustainable and high returns.
