Kumari Bank Merges With NCC Bank | Joint Operation Commences From Today
January 1, 2023 | Investopaper
Kumari Bank Limited (KBL) and Nepal Credit & Commerce Bank Limited (NCCB) have successfully merged in the share swap ratio of 1:1. This means that every 100 shares of Kumari Bank and NCC Bank will convert into 100 shares of the bank after the merger.
After the merger, the joint operation will commence from Poush 17, 2079 BS in the name of ‘Kumari Bank Limited’.
Nepal Rastra Bank provided final approval for the merger on Poush 6, 2079 BS. Likewise, both the banks have already approved the merger from their respective AGM held on Mangsir 25, 2079 BS.
The swap ratio was determined after the due diligence audit. Both the banks had reached a preliminary agreement to merge in the share swap ratio of 1:1 during the merger agreement.
A preliminary memorandum of understanding (MoU) was signed between the two banks on Ashwin 10, 2079 BS. The MoU was signed by Krishna Prasad Gyawali on behalf of Kumari Bank and Chandra Bastola on behalf of NCC Bank.
The name of the bank after merger will remain as ‘Kumari Bank Limited’. Ramesh Raj Aryal will be the Chief Executive Officer of the bank.
After the successful merger, the new bank will have the paid-up capital of Rs. 25.85 Arba. Likewise, the total deposit collection and loans will stand at Rs. 311.34 Arba and Rs. 274.55 Arba respectively.
Share Trading Suspended
Nepal Stock Exchange (NEPSE) had suspended the trading of shares of principal shareholders of Kumari Bank Limited (KBL) and Nepal Credit & Commerce Bank Limited (NCCB). Nepse stopped trading in shares after a merger agreement was reached between the two banks.
KBL last traded at Rs. 186 while the shares of NCCB traded at Rs. 184 before merger [As of September 25, 2022].
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