Print Edition - 2014-12-08 | MONEY
NMB Bank signs merger deal with Prudential
Dec 7, 2014-
NMB Bank has gone on a merger spree signing unification pacts with four financial institutions within a space of two months. On Sunday, it signed a memorandum of understanding (MoU) with Prudential Finance after having concluded similar deals with Clean Energy Development Bank, Pathibhara Development Bank and Bhrikuti Development Bank earlier.
NMB Bank said in a press release that its merger committee coordinator Kamalesh Kumar Agrawal and Prudential Director Raman Sharma signed the MoU.
As per the merger bylaw, the union should be completed within six months with the central bank having the power to extend the deadline.
The name NMB Bank will be retained following the merger. Its total capital and reserve will swell to Rs 6 billion as a result. Similarly, total deposits and loans will increase to Rs 43.48 billion and Rs 34.64 billion respectively.
The bank, which has been providing banking services through its 29 branches and four extension counters, will then have 69 branches and seven extension counters.
The number of its ATM counters will rise to 38 from the current 33. The bank said that the merger would enable it to provide banking services in an expanded area.
The mergers will turn NMB into one of the largest banks in Nepal in terms of paid-up capital. Currently, NMB’s paid-up capital stands at Rs 2 billion while that of Prudential is Rs 483 million. Clean Energy has a paid-up capital of Rs 1.14 billion. Bhrikuti’s paid-up capital is Rs 423.78 million and Pathibhara has a paid-up capital of Rs 115 million.
Published: 08-12-2014 10:30