January 14, 2022 | Investopaper
Nabil Bank Limited has agreed to acquire Nepal Bangladesh Bank. For this purpose, representatives of the two banks have signed an agreement on January 13, 2022 [Poush 29, 2078 BS].
The agreement for acquisition has been signed by Uday Krishna Upadhyaya on behalf of Nabil Bank and Indra Bahadur Thapa on behalf of Nepal Bangladesh Bank. The bank will operate in the name of ‘Nabil Bank Limited’ after the acquisition.
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.
The companies aim to complete the acquisition within five months. 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 22.5 billion. Similarly, the loan amount will be Rs 300 billion and the deposit amount will be Rs 314 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.