Global IME
Bank and Commerz and Trust Bank Nepal today signed the final Memorandum of
Understanding for merger.
The merged
entity in the name of Global IME Bank will start operating as a single unit
after the third quarter, said Global IME Chairman Chandra Prasad Dhakal after
signing the memorandum of understanding with chairman of Commerz and Trust Bank
Nepal Shovakar Neupane, on behalf of their respective institutions here today.
One of the
promoters from the Commerz and Trust Bank Nepal will represent in the board,
Dhakal, said, adding that the remaining board members and the chief executive
of the current Global IME Bank will continue to serve the institute.
Though, it
is the second merger among the two commercial banks after NIC Bank and Bank of
Asia Nepal (currently NIC Bank of Asia) lat July, the merger will be the first
of its kind in terms of different promoters in two institutions.
By
mid-April, the two Class 'A' banks will be completely merged, he added.
Both the commercial
banks have scheduled their annual general meetings next month to get their
merger proposals endorsed by the shareholders.
Commerz and
Trust is holding its AGM on March 3, whereas Global IME has scheduled its AGM for
March 5.
The merged
entity is planning to publish a single merged third quarterly financial
report,” Dhakal added.
The merger
will help increase paid up capital that will give us more room for investment
in productive sectors and large-scale projects,” Dhakal said.
The merged
Global IME Bank will have Rs 4.10 billion paid-up capital.
Global IME
Bank had earlier merged with two Class 'C' financial institutions –IME Finance
and Lord Buddha Finance – to form Global IME Bank. Later, it merged with Social
Development Bank and Gulmi Development Bank too.
After the
central bank's initiation, the banks and financial institutions have been
taking merger as a safe landing due to shrinking market size and and also to
reduce operating cost.
The central
bank had issued Merger Bylaws in May 2011 to facilitate the mergers, though it
is planning to bring Acquisition Bylaw soon.
Currently, some 43 banks
and financial institutions are planning mergers to become 18 institutions.
Likewise, some 23 banks and financial institutions have taken Letter of Intent
(LoI) from the central bank to merge.
1 comment:
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