KATHMANDU, Nov 30: Nepal Investment Bank Limited (NIBL) and Mega Bank have signed a final draft of Memorandum of Understanding (MoU) for a merger. A meeting of the Board of Directors of both the banks have endorsed the document and exchanged it, paving the way for merging the institutions.
As per the deadline set by the Nepal Rastra Bank (NRB), the banks can go for merger till January 6, 2023 to receive benefits announced by the central bank.
According to merger committee member Gopal Khanal, who is also a member of the Board of Directors of Mega Bank, they plan to merge and launch integrated transactions within the deadline given by the central bank.
The banks signed a preliminary merger agreement with a swap ratio of 100: 90 on June 10. One unit of share of the NIBL will be equivalent to 0.90 of Mega Bank. NIBL’s paid-up capital is Rs18.31 billion while that of Mega Bank is Rs16.2 billion.
Following the merger, the new entity is to be named Nepal Investment Mega Bank and Prithvi Bahadur Pande will be its chair and Jyoti Pandey the Chief Executive Officer.