The board of directors of both the institutions signed a memorandum of understanding (MoU) to this connection on Monday. [break]
"We have decided to merge to consolidate our financial and market position and provide better banking service to our customers," reads a joint statement of the two financial institutions.
Once merged, both the institutions say they are hopeful of generating better returns, something which will bring cheers to their shareholders as well.
"We believe that all the stakeholders of the companies will be benefited by this decision,” reads the statement.
According to the statement, the merger will enable the financial institutions raise their joint paid-up capital to Rs 900 million, total deposits to Rs 5.14 billion and total loans and investments to Rs 4.97 billion. It will also raise their network to 24 branches across the country.
The board of directors of the two financial institutions have stated that the decision was largely aimed at overcoming existing cut throat competition and constraints like limited area of operations.
“Tax waiver and decision of the Nepal Rastra Bank - central monetary authority -- to provide incentives also encouraged us to go for merger,” the statement said.
Related story
Stars, KIEC Birgunj win in Birgunj Premier League
_20240311121839.jpg)
