KATHMANDU, Dec 26: Himalayan Bank Limited (HBL) has scheduled its annual general meeting (AGM) for January 14, which is likely to endorse the bank’s merger with Nepal Investment Bank Limited (NIBL), which has been going at a slow pace.
Issuing a public notice, the HBL has called on its 29th AGM incorporating the issue of merger as one of the eight specific proposals to be discussed in the shareholders’ meeting. Increasing paid up capital to Rs 16 billion, issuance of 21.38 percent bonus shares and fixing the swap ratio at 1:1 for merger, among others, will be the main agendas to be forwarded during the AGM, according to HBL.
The two commercial banks inked a memorandum of understanding for merger on May 13, agreeing to name the merged entity as ‘Himalayan and Nepal Investment Bank Limited.’ These entities have already crossed the central bank’s deadline of six months to complete the unification process, but no significant progress has been seen till the date.
Three weeks ago, they wrote to Nepal Rastra Bank requesting to extend the deadline to complete the final unification process.