KATHMANDU, July 7: Himalayan Bank Limited (HBL) is acquiring Civil Bank Limited (CBL), with both the banks scheduled to sign a memorandum of understanding for the acquisition on Friday.
In this regard, both the banks conducted their board meetings on Thursday. The HBL board meeting is reported to have given the go-ahead for the acquisition. The unified entity to be formed after the acquisition will be carrying out joint transactions in the name of Himalayan Bank.
HBL is considering acquiring CBL at the swap ratio of 100:81, according to sources. However, the decision is yet to be finalized.
Earlier, HBL attempted to get merged with Nepal Investment Bank Limited, which however, failed in the last hour of the merger process. While former finance minister Janardan Sharma and HBL’s former chairman Tulasi Prasad Gautam were even dragged into controversies for this failure, the lack of consensus on the swap ratio of the two banks was also sought as the main reason behind the failure of merger.