KATHMANDU: Two influential private sector banks, Himalayan Bank and Nepal Investment Bank, have reached a merger agreement.
According to the preliminary agreement reached between the two banks on Thursday, the name of the bank to be formed after the merger will be ‘Himalayan and Nepal Investment Bank’, said Chairman of Himalayan Bank, Tulasi Prasad Gautam.
He said that only the name was agreed upon now. Himalayan and Nepal Investment Bank to be formed after the merger of the two banks will become the largest bank in Nepal on the basis of paid up capital.
Chairman of Himalayan Bank Gautam says that the work will move forward as soon as possible so that integrated business can take place.
Largest bank
The number of commercial banks in Nepal will drop to 26 after the two banks merge. It’s total paid-up capital will reach around Rs 27 billion.
In a joint statement issued by the two banks on Thursday, the bank’s deposits will reach Rs 311 billion and loans will reach Rs 287 billion after the merger. Similarly, the number of branches will reach 152 and the number of employees will reach more than 2500.
In the board of directors of the bank to be formed after the merger, 3/3 directors will be appointed from both the banks and the new board of directors will appoint an independent director and there will be a board of directors of 7 members.
After the merger, the company aims to increase its capital, work area and work capacity and establish itself in the financial market as a strong bank.
