HIMALAYAN NEWS SERVICE
KATHMANDU: NIC Bank and Bank of Asia Nepal have signed a merger agreement. The pact was signed by chairmen of both the banks this evening in the presence of directors, joint merger committee members, promoters, and officials of both the banks.
However, the merger is subject to approval of the annual general meeting of the banks and regulatory authorities. It will be the first merger between two healthy class ‘A’ financial institutions that
will lay foundation for a strong commercial bank, they said, adding that the agreement was culmination of a meticulously planned merger process that started some six months ago. “The merger will create one of the largest banks in Nepal in terms of capital fund, balance sheet size, branch, ATM network, customers and employees,” they said.
Both the banks have lauded their shareholders, promoters, regulators and staff for their support for the much anticipated merger that will not only increase the balance sheet strength but also the professionalism of the merged institution. By the time merger is completed, the core capital, including reserves, of the new entity will be around Rs 5 billion.
The central bank has asked the banks and financial institutions with the same promoters to merge. NIC Bank and Bank of Asia Nepal are largely promoted by same groups. Bishal Group and Shanghai Group hold majority stakes in both banks, whereas NIC Bank has Golchha and Golyan Groups also as promoters and Bank of Asia Nepal has promoters from Lucky Group.