August 23, 2020 | Investopaper
NMB Bank Limited has completed the acquisition of Kanchan Development Bank Limited. After the successful acquisition, both the banks will start joint operation from Bhadra 6, 2077. The joint operation will be in the name of ‘NMB Bank Limited’.
Nepal Rastra Bank provided the final approval for the joint operation on Shrawan 25, 2077. Similarly, the office of company registrar approved the acquisition on Shrawan 28, 2077
Both the banks had already endorsed the acquisition from their respective SGM held on Ashad 21, 2077.
After the acquisition of Kanchan Development Bank, the paid-up capital of NMB Bank has risen to Rs 14.45 Arba.
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NMB Bank-Kanchan Development Bank Acquisition Agreement
NMB Bank has signed the final agreement for acquisition of Kanchan Development Bank Limited. Both banks signed the final agreement on June 7 ,2020 [Jestha 25, 2077].
Previously, NMB Bank and Kanchan Development Bank signed the MOU for the acquisition process on February 9, 2020 [Magh 27, 2076].
The swap ratio for the acquisition is 100:85. This means that each 100 shares of Kanchan development bank will receive 85 shares of NMB Bank Limited after the acquisition.
Kanchan Development Bank is a ‘B’ class financial institution operating for the last ten years in Province 7. Its head quarters located in Mahendranagar, Kanchanpur.
Kanchan Development Bank covers five districts in Province 7 namely Kailali to Kanchanpur, Dadeldhura, Baitadi, and Doti. The development bank has 17 branches and 3 extension counters.
NMB Bank currently has a network of 164 branches, 133 ATMs and 5 extension counters across the country. The Bank has been recognized as The Bank of the Year–Nepal in 2017 & 2018, by The Financial Times, London.
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