January 2, 2023 | Investopaper
Nepal Investment Bank Limited (NIBL) is going to merge with Mega Bank Nepal Limited (MEGA). Nepal Rastra Bank has provided the final approval for the merger on Poush 17, 2079 BS.
With this, both the banks will integrate and commence joint operation from Poush 27, 2079 BS in the name of ‘Nepal Investment Mega Bank Limited’.
Earlier, both the banks had reached a preliminary merger agreement on Jestha 27, 2079 BS. The MoU for merger was signed by Prithvi Bahadur Pande, Chairman of Nepal Investment Bank Limited and Bhoj Bahadur Shah, Chairman of Mega Bank Nepal Limited.
After the merger of the two banks, Prithvi Bahadur Pandey will be the chairman of the board of directors and Jyoti Prakash Pandey will be the chief executive officer.
As of Ashad’s end 2079 BS, Nepal Investment Bank Limited has the paid up capital of Rs. 18.31 billion while Mega Bank Limited has a paid-up capital of Rs. 16.12 billion. Likewise, the reserve and fund of Nepal Investment Bank Ltd. is Rs. 14.82 billion and Mega Bank Nepal Limited has a reserve of Rs. 5.92 billion.
The swap ratio for the merger has been agreed at 100:90. This means that every hundred shares of Mega Bank will convert into 90 shares of the new bank formed after merger.
Similarly, NIBL has a loan portfolio of Rs. 173.46 billion and MEGA has loans of Rs. 150.46 billion. On the other hand, deposit collection of NIBL stood at Rs. 182.01 billion while Mega Bank Nepal Limited has a total deposit collection of Rs. 152.08 billion.
Previously, Nepal Investment Bank had inked merger agreement with Himalayan Bank. However, the merger couldn’t be successful due to the dispute over the share swap ratio.