Kathmandu: The Global IME Bank Limited and Bank of Kathmandu have signed the final memorandum of understanding on Monday for merger and acquisition. Global IME Bank Chairman Chandra Prasad Dhakal and Bank of Kathmandu Chairman Prakash Shrestha signed on the final MoU.
Previously, the board of directors of both banks approved the arrangement that the share swap ratio will be 1:1 which was determined based on the evaluation report of current and fixed assets, liabilities and transactions received from the appraiser for the purposes of merger and acquisition between Global IME Bank Limited and Bank of Kathmandu Limited.
After the merger, the bank’s total capital will be Rs 57 billion, paid-up capital Rs 35 billion, total deposits Rs 400 billion, total loans will reach more than Rs 379 billion. The new private sector bank formed after the merger will become the largest bank in Nepal in terms of total capital, paid-up capital and business size.
The name of the new bank will be Global IME BOK Limited. The Board of Directors will consist of five members including Chairman Chandra Prasad Dhakal from Global IME Bank and two members from Bank of Kathmandu.
Similarly, Ratna Raj Bajracharya, the chief executive officer of Global IME Bank, will remain as the bank’s chief executive officer. So far, five commercial banks, 10 development banks and six finance companies have been merged in Global IME BOK Limited.
After the merger, it is claimed that Global IME BOK Limited will be the largest bank in the country with a total of 385 branch offices, 367 ATMs, 275 branchless banking services, 61 extended branch offices, three foreign contact offices, more than 4 million customers and many other financial indicators.
In the signing ceremony, Global IME Bank Chairman Chandra Prasad Dhakal said that the banking sector will be developed according to the needs of the country, adding that there will be a need for large and powerful banks to invest in large infrastructures, provide financial access throughout the country and reduce banking costs.
Stating that the Global IME Bank is always the first to comply with the instructions given by the government and the Nepal Rastra Bank, he said that the final memorandum of understanding of this merger was signed accordingly. He also expressed his commitment to make the new bank that will be formed after the merger not only big but also the best bank in all respects.
Bank of Kathmandu Chairman Prakash Shrestha said that the role of banks and financial institutions will be important in the economic development and prosperity of the country. “For the country’s economic transformation and economic prosperity, a big, capable and good bank is necessary. It will be addressed by the Global IME BOK Ltd that will be formed after the merger”, he said.
Radhesh Pant, the coordinator of the joint merger committee, said that the merger committee has worked with the investors, employees and the entire bank at the center and said that only a big bank can give sustainable and high returns.
