Investment and Himalayan Bank merger agreement, becoming a bank with a capital of 27 billion

KATHMANDU: THURSDAY, MAY 13, 2021 – A preliminary merger agreement has been signed between Nepal Investment Bank and Himalayan Bank. Chairman of Nepal Investment Bank Prithivi Bahadur Pandey and Chairman of Himalayan Bank Tulsi Prasad Gautam signed the preliminary merger agreement on Thursday afternoon.

Following the merger / acquisition policy put forward by Nepal Rastra Bank with the objective of making Nepal’s financial sector strong and capable, the two banks have agreed to merge and conduct integrated business.

It is mentioned in the joint statement issued after the agreement to become the largest commercial bank in the country after the merger of these two banks as the leading banks in the field of commercial banking.

After the merger, the name of the bank will be ‘Himalayan and Nepal Investment Bank’ and the chairman of the board of directors will be Prithvi Bahadur Pandey. Similarly, Chief Executive Officer (CEO) Ashok Shamsher Rana has been agreed to remain.

Similarly, in the Board of Directors of the bank to be formed after the merger, 3/3 directors will be appointed from both the banks and the new board of directors will appoint an independent director and there will be a board of directors of 7 members.

At present, the paid up capital of Nepal Investment Bank is Rs. 16.26 billion. Himalayan Bank’s paid up capital is Rs. 10.68 billion. The paid-up capital of the merged bank will reach Rs 26.94 billion.

Similarly, the reserve and fund of Nepal Investment is Rs. 14.10 billion and that of Himalayan Bank is Rs. 7.67 billion. At present, the loan investment of Nepal Investment Bank is Rs. 160.98 billion and that of Himalayan Bank is Rs. 127.14 billion.

On the deposit side, Nepal Investment Bank has Rs. 168.29 billion and Himalayan Bank has Rs. 143.70 billion. After the merger, it will be the strongest and largest bank in every sector.