BoK, three other FIs agree to merge

- POST REPORT, Kathmandu
BoK, three other FIs agree to merge

Jun 12, 2014-

Bank of Kathmandu (BoK) and three other financial institutions, including International Leasing and Finance (ILF), Shree Investment and Finance (SIF), and Nepal Express Finance (NEF), have reached an understanding to merge.

Chairmen of the institutions signed a memorandum of understanding (MoU) to this effect on Thursday.

Satya Narayan Manandhar of BoK, Anjay Bahadur Shah of ILF, Rabindra Raj Pandey of SIF and Santosh Narayan Shrestha of NEF signed the MoU, a BoK statement said on Thursday.

“Further process of the merger will be initiated after receiving the Letter of Intent from the Nepal Rastra Bank,” the statement added.

Following the merger, the merged entity will continue to operate as Bank of Kathmandu Ltd. The bank said the merger is likely to improve and uplift the capital, skill, stability, earning potential, service capability of the institution.

“It is also expected that the size and productivity of the institution is likely to improve post merger which can facilitate expansion of the market in the competitive environment and also improve profitability,” the bank said.

The paid-up capital of the merged entity will be Rs 4.37 billion, while total deposits and loans will be Rs 31.41 billion and Rs 26.96 billion, respectively.

The merged entity will have 65 branches, 10 extension counters and 57ATMs and 24 branchless banking centres.

 

Published: 13-06-2014 10:47

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