CCBL to acquire IDBL

Kathmandu, June 26: Century Commercial Bank Limited is going to acquire Innovative Development Bank Limited.

CCBL Sunday signed a Memorandum of Understanding with IDBL to acquire the Bhairahawa based development bank which has 9 branch offices.

The acquisition process will be completed and integrated service will be in operation by January next year, informed CCBL chairman Rajesh Kumar Shrestha.

He said that there would be no duplication in branch with the IDBL so the bank would face no trouble in adjusting employees and branches.

IDBL chairman Devendra Bahadur Raut stated that the creation of large financial institution would minimize the risk factors in financial sector.

CCBL has Rs. 2.84 billion paid up capital and is preparing to issue right share worth Rs. 850 million. "We have filed a request at the Securities Board of Nepal to issue the right share," said Shrestha.

Informing that the bank was in the merger and acquisition process with other bank and financial institution, Shrestha said that the bank would add additional Rs. 1 billion to its paid up capital by mid-July.

The youngest commercial bank had mobilized Rs. 26.01 billion deposits and Rs. 22.83 billion loans by April this year. It has 31 branches, 29 ATMs, 8 branchless banking and three extension counters.

Likewise, IDBL has Rs. 290 million paid up capital and has mobilized Rs. 2.19 billion deposits and Rs. 1.75 billion loans.

By April, CCBL earned Rs. 345 million and IDBL earned Rs. 52 million operational profit.