July 11, 2022 | Investopaper
Nabil Bank Limited has successfully acquired Nepal Bangladesh Bank Limited. The joint operation will commence from Ashad 27, 2079 BS. The bank will operate in the name of ‘Nabil Bank Limited’ after the acquisition.
Nepal Rastra Bank (NRB) granted the final approval for acquisition on Ashad 15, 2079 BS.
Both the banks had approved the acquisition from their respective Special General Meeting (SGM) held on Saturday [Jestha 7, 2079 BS].
The banks have agreed on the acquisition in the swap ratio of 100:43. This means that the current 100 shares of Nepal Bangladesh Bank will convert into 43 shares of Nabil Bank Limited after the completion of the acquisition process.
Previously, Nabil Bank and Nepal Bangladesh bank had signed a Memorandum of Understanding (MOU) for acquisition on January 13, 2022 [Poush 29, 2078 BS]. The agreement for acquisition was signed by Uday Krishna Upadhyaya on behalf of Nabil Bank and Indra Bahadur Thapa on behalf of Nepal Bangladesh Bank.
After the acquisition of Nepal Bangladesh Bank by Nabil Bank, the bank’s primary capital will be Rs 43 billion, and paid-up capital will be Rs 22.83 billion. Similarly, the loan amount will be Rs 309 billion and the deposit amount will be Rs 320 billion. The size of non-fund-based businesses will be over Rs 130 billion.
The branch network will reach 235. The number of customers will also be over 1.6 million.