February 24, 2023 | Investopaper
Himalayan Bank Limited (HBL) has successfully acquired Civil Bank Limited (CBL). After the acquisition, the joint transaction will commence from Falgun 12, 2079 BS.
Earlier, both the banks had reached a preliminary agreement (MOU) for acquisition on Ashad 29, 2079 BS. The MoU was signed by Prachanda Bahadur Shrestha, Chairman of Himalayan Bank, and Pratapjung Pandey, Chairman of Civil Bank Limited.
Nepal Rastra Bank has already given final approval for the acquisition.
After the acquisition, the name of the bank is “Himalayan Bank Limited”. Ashok Shamsher Rana is the chief executive officer (CEO) of the bank.
As of Ashad’s end 2079 BS, Himalayan Bank Limited had the paid up capital of Rs. 12.96 billion while Civil Bank Limited had a paid-up capital of Rs. 9.07 billion. Likewise, the reserve and fund of HBL stood at Rs. 8.03 billion and CBL had a reserve of Rs. 2.91 billion.
The swap ratio for the acquisition has been agreed at 100:81. This means that every hundred shares of Civil Bank will convert into 81 shares of the new bank HBL formed after acquisition.
After the merger the total capital of the bank has reached Rs. 34 billion. Likewise, total deposits reached Rs. 274 billion and total loans has reached Rs. 2.50 billion. Similarly, the branch network of Himalayan Bank has reached 189.
Previously, Himalayan Bank had inked merger agreement with Nepal Investment Bank. However, the merger couldn’t be successful due to the dispute over the share swap ratio. Nepal Investment Bank has signed merger agreement with Mega Bank Nepal Limited at a swap ratio of 100:90.