Nepal Investment, Himalayan Bank sign merger deal

Kathmandu, May 13

Nepal Investment Bank Ltd. (NIBL) and Himalayan Bank Ltd. (HBL) have signed an Memorandum of Understanding to go into a merger.

Chairman of Nepal Investment Bank Prithvi Bahadur Pandé and chairman of Himalayan Bank Tulsi Prasad Gautam signed the MoU on Thursday, the banks said in a joint press statement.

"This development has officially paved the way to complete formalities before the process of the start of joint operations between the two commercial banks," read the statement.

After the merger, the new company will be known by Himalayan and Nepal Investment Bank Ltd. Pandé will be chairman of the bank while Ashoke Shamsher Rana will be Chief Executive Officer (CEO). Rana is the incumbent CEO of the HBL.

Similarly, the Board members’ post- merger will be comprised of three members each from both banks while also accommodating an independent member thus making it a seven-member Board.

Merger of the two 'A' class commercial banks will make the biggest bank in the history of Nepalese banking industry.

At present the paid up capital of NIBL stands at Rs. 16.26 billion whereas HBL's paid up capital amounts to Rs. 10.68 billion.

After the merger the combined paid up capital of the banks will reach a staggering Rs. 26.14 billion making it the bank with the highest paid up capital in the country.

"Similarly, combining the assets, loans and deposits of both banks will elevate the bank into unparalleled heights," said the banks.

Published in The Rising Nepal daily on 14 May 2021.