May 14, 2021 | Investopaper
Nepal Investment Bank Ltd. (NIBL) and Himalayan Bank Ltd. (HBL),two pioneer banks of Nepalese Banking Industry, have jointly signed an MoU (memorandum of understanding) to go into a merger. The signing of the MoU was done by the Chairman of Nepal Investment Bank Mr. Prithvi Bahadur Pandé alongside the Chairman of Himalayan Bank Mr. Tulsi Prasad Gautam.
After the merger, the new bank will be known with the unifying name of “Himalayan and Nepal Investment Bank Ltd.”. Mr. Prithvi Bahadur Pandé will be retained as the Chairman of the bank while Mr. Ashoke Shamsher Rana will be the Chief Executive Officer (CEO). Similarly, the Board members’ post- merger will be comprised of 3 members each from both banks while also accommodating an independent member thus making a total of 7 members on the Board.
If the merger becomes successful, the merged entity will become the biggest commercial bank of Nepal. At present the paid up capital of Nepal Investment Bank stands at 16.26 billion whereas Himalayan Banks paid up capital amounts to 10.68 billion. After the merger the combined paid up capital of the banks will reach a staggering 26.14 billion making it the bank with the highest paid up capital in the country.
The major promoters in Nepal Investment Bank include: Rastriya Beema Company (12.15 percent), Mahalaxmi Investment (7.15 percent), Chaya Investment (6.65 percent) and others.
Likewise, Himalayan Bank has Habib Bank, Pakistan (20 percent), Employees Provident Fund (14 percent), Aabha International (11.38 percent) as the major promoters.
Currently, NIBL is led by Jyoti Prakash Pandey while Ashok Shamsher Rana is the CEO of Himalayan Bank.