KATHMANDU, July 11: Laxmi Sunrise Bank Limited, an entity formed by the merger of Laxmi Bank Limited (LBL) and Sunrise Bank Limited (SBL), is ready to carry out joint operations from Friday.

After going through a number of controversies related to the appointment of a new chairman, the two banks finally agreed to go into unification. Nepal Rastra Bank (NRB) gave a final approval for merger on July 7 while the Office of The Company Registrar and the Securities Board of Nepal gave the go ahead on Sunday and Monday, respectively.   

LBL and SBL principally agreed to go into merger six months ago. In this regard, the two commercial banks on May 22 inked the final agreement, while they received the approval from their general meetings held separately on June 18.

LBL has a paid-up capital of Rs 11.55 billion, while that of SBL is Rs 10.11 billion. After unification, the merged entity will have a paid-up capital of Rs 21.67 billion.  

The two banks have agreed to merge for the swap ratio of 1:1. Ajay Bikram Shah, chief executive officer of LBL, will hold the position of the CEO of the newly formed entity. Following the merger of LBL and SBL, the number of commercial banks in Nepal will be reduced to 20.    

 
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