KATHMANDU: A preliminary memorandum of understanding (MoU) was signed between Global IME Bank Limited and Bank of Kathmandu Limited on Thursday for the merger and acquisition, thereby making the biggest private sector bank in Nepal.
The MoU has been signed by Chandra Prasad Dhakal, Chairman of Global IME Bank and Prakash Shrestha, Chairman of Bank of Kathmandu Limited.
It has been agreed that the name of the new bank to be Global IME BOK Limited. There will be 5 persons, including Chairman Dhakal, from the Global IME Bank and 2 from BOK Ltd in the executive board. Likewise, it has been agreed that Ratnaraj Bajracharya will be the chief executive officer of the bank.
A preliminary agreement has been reached to maintain a swap ratio of 1:1 at present, if the swap ratio recommended by Global IME Bank Limited and Bank of Kathmandu Limited is assessed otherwise.
Global IME BOK Limited, which will be formed by merging 21 banks and financial institutions, will include 5 Class A commercial banks, 10 development banks and 6 finance companies, Global IME Bank said in a statement.
The total capital of the bank after the merger would be Rs. 52.29 billion, paid-up capital Rs. 34.41 billion, total deposits of Rs. 384 billion, total lending Rs. 380 billion. The bank will be the largest private sector bank in Nepal in terms of total capital, paid-up capital and business size.
In addition, both the banks have earned a net profit of more than Rs 6 billion by mid-June. The new bank Global IME BOK Limited will have 385 branch offices, 367 ATMs, 275 branchless banking services, 61 extended branch offices, 3 overseas liaison offices, more than 3.7 million customers.
After the merger of the two banks, the bank is confident of increasing its capital, working area and working capacity and establishing itself in the financial market as the strongest and most capable bank in the country to provide more excellent services and facilities to its customers and give higher returns to investors.
In addition, the Chairmen of the Board of Directors of both the banks jointly expressed their commitment to bring new opportunities in the financial sector by keeping in view the interests of the customers, shareholders and all those directly or indirectly concerned with the Bank.
Speaking on the occasion, Global IME Bank Chairman Chandra Dhakal said that it was a historic event in the history of banking in Nepal.
He said that Global IME Bank has always been the first to implement the directives given by the Government of Nepal and Nepal Rastra Bank.
He also expressed his commitment to make the new bank to be formed after the merger not only big but also the best bank in all respects. Chairman of Bank of Kathmandu Shrestha said that this day will always be remembered in the history of banking sector.
He said that merger is a natural process but the main issue is how to form a bank after merger. He expressed confidence that the new bank would achieve great success in the banking sector of Nepal.
At the same time, the Chairmen of the two banks expressed their heartfelt gratitude to the Government of Nepal, Nepal Rastra Bank, the bank’s management, shareholders, staff, media and other well-wishers for their direct or indirect support in the merger.
