Nepal Investment Bank and Himalayan Bank signed a Memorandum of Understanding (MoU) to merge the two commercial banks.
“With the intention of strengthening the banking sector of Nepal and in line with Nepal Rastra Bank’s encouragement through their Merger and Acquisition policy, Nepal Investment Bank Ltd (NIBL) and Himalayan Bank Ltd (HBL) have jointly signed an MoU to go into a merger,” according to a press release issued by the banks on Thursday.
The signing of the MoU was done by the Chairman of Nepal Investment Bank Prithvi Bahadur Pandé alongside the Chairman of Himalayan Bank Tulsi Prasad Gautam, the press release states, adding that the signing of MoU has officially paved the way to complete formalities before the process of the start of joint operations between the two commercial banks.
After the merger, the bank will be known with the unifying name of ‘Himalayan and Nepal Investment Bank Ltd’. Prithvi Bahadur Pandé will be retained as the Chairman of the bank while Ashoke Shamsher Rana will be the Chief Executive Officer (CEO).
Likewise, the Board members’ post- merger will comprise 3 members each from both the banks while also accommodating an independent member thus making a total of 7 members on the Board.
Nepal Investment Bank and Himalayan Bank are two A class commercial banks, therefore merger between them is expected to make history in the Nepali banking industry. At present the paid up capital of Nepal Investment Bank stands at 16.26 billion, whereas Himalayan Bank’s paid up capital amounts to 10.68 billion. After the merger, the combined paid up capital of the joint entity will reach a staggering Rs 26.14 billion making it the bank with the highest paid up capital in the country.
Similarly, combining the assets, loans and deposits of both banks will elevate the bank into unparalleled heights, the press release further reads. The banks hope to retain the confidence of their stakeholders and shareholders through the major development and also continue to provide exemplary services to its clients’ post –merger, said the Chairmen of the respective banks.