July 14, 2023 | Investopaper
Laxmi Bank Limited (LBL) has successfully merged with Sunrise Bank Limited (SRBL). The joint operation will commence from Ashad 29, 2080 BS.
The name of the bank after the merger will be “Laxmi Sunrise Bank Limited”. Ajay Bikram Shah, the current CEO of Laxmi Bank, will remain as the chief executive after the merger.
Both banks signed the final agreement for merger on Jestha 8, 2080 BS.
The swap ratio for the merger has been agreed at 1:1. This means that every hundred shares of Laxmi Bank and Sunrise Bank will convert into 100 shares of the new bank formed after merger.
Earlier, both the banks had reached a preliminary merger agreement on Poush 25, 2079 BS. The MoU for merger was signed by Raman Nepal, Chairman of Laxmi Bank Limited and Moti Lal Dugad, Chairman of Sunrise Bank Limited.
As of Chaitra’s end 2079 BS, Laxmi Bank Limited has the paid up capital of Rs. 11.55 billion while Sunrise Bank Limited has a paid-up capital of Rs. 10.12 billion.
After the merger, the capital will increase to Rs. 21.67 billion. Likewise, the total deposit will amount to Rs. 276.12 billion while the loans and advances will reach Rs. 255.23 billion.
With the merger agreement, the trading of shares of basic shareholders has remained halted in NEPSE.