Sunday, November 10, 2013

Global IME‚ Commerz and Trust Bank Nepal plan merger

Global IME Bank and Commerz and Trust Bank Nepal today signed a Memorandum of Understanding (MoU) to consolidate the two financial institutions.
Chairman of Global IME Bank Chandra Dhakal and chairman of Commerz and Trust Bank Shovakar Neupane signed the MoU that could lead to the biggest merger between the two commercial banks in the country.
"The paid up capital of the merged entity will stand at Rs 4.41 billion," Dhakal said after the signing ceremony here today. " Global IME Bank currently has a paid up capital of Rs 2.42 billion, whereas Commerz and Trust Bank has a paid up capital of Rs 2 billion," he said, adding that the total deposit – after the merger – will stand at Rs 48 billion.
They will conduct a due diligence audit after filing an application to the central bank. "We will fix share swap ratio, after the results of the audits," added Dhakal, who will remain chairman of the merged Global IME Bank that is also the merged entity with five other financial institutions.
Likewise, the current chief executive of Global IME Bank Ratna Raj Bajracharya will also retain his position in the consolidated unit. "The board of the merged entity will include one representative from Commerz and Trust Bank Nepal," according to the bank that has booked a net profit of Rs 271.43 million in the first quarter of the current fiscal year.
Similarly, Commerz and Trust had posted a net profit of Rs 58.62 million in the last fiscal year.
Global IME Bank's has been trading its shares at Rs 430 per unit, whereas Commerz and Trust Bank Nepal has traded its shares at around Rs 200 per unit today.
The merged bank – that will have 451,000 customers after the merger – will be the second merger, if it completes its merger successfully, after the merger of NIC Bank and Bank of Asia Nepal.

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