Print Edition - 2017-01-02 | MONEY
Five FIs merge, start joint ops
Jan 2, 2017-
Nepal Credit and Commerce Bank Limited, Infrastructure Development Bank Limited, Apex Development Bank Limited, Suprim Development Bank Limited and International Development Bank Limited have completed their merger and started operation as a single entity—Nepal Credit and Commerce (NCC) Bank Limited—from Sunday.
Nepal Rastra Bank Governor Chiranjibi Nepal inaugurated the operation of the merged entity amid a ceremony at NCC’s corporate office in Bagbazar, Kathmandu. “As the bank has strengthened its capital base, it should now concentrate investing in infrastructure and productive sectors,” said Nepal.
After the merger, the paid-up capital of the bank has reached Rs4.67 billion, with total deposit of Rs55 billion and total lending of Rs44 billion.
The five entities had filed an application at NRB on 27 November 2015, seeking permission to merge. They got the approval in principle from the regulator in mid-March 2016.
The five institutions also got approval from their respective annual general meetings and conducted due diligence audit, before getting final approval from NRB on 5th December 2016.
The merged entity acquired approval from Office of Company Registrar recently for starting joint operation. The bank has said existing NCC Bank CEO Ramesh Raj Aryal will continue to lead the merged entity.
Earlier, Kumari Bank was also supposed to get merged with the five institutions making it one of the biggest merger in the Nepali banking industry, but it pulled out mid-way.
Published: 02-01-2017 10:12