Global IME Bank and Bank of Kathmandu Sign Final Merger Agreement

KATHMANDU, Nov 15: Global IME Bank Limited and Bank of Kathmandu Limited have signed a final memorandum of understanding on Monday to merge with each other.

The memorandum of understanding was signed by Global IME Bank Chairman Chandra Prasad Dhakal and Bank of Kathmandu Limited Chairman Prakash Shrestha.

Earlier, for the purpose of merger between Global IME Bank Limited and Bank of Kathmandu Limited, the board of directors of both banks has approved the share swap ratio of 1:1 determined on the basis of the valuation report of movable and immovable assets, liabilities and transactions received from the appraiser.

After the merger, the bank's total capital will reach 57 billion, paid-up capital 35.77 billion, total deposits 400 billion, total loans will reach more than 379 billion rupees. The new bank formed after the merger will become the largest bank in Nepal in terms of total capital, paid-up capital and business size.

The name of the new bank will be Global IME BOK Limited and the board of directors will consist of 5 people including Chairman Chandra Prasad Dhakal from Global IME Bank and 2 people from Bank of Kathmandu. Similarly, Ratnaraj Bajracharya, the Chief Executive Officer of Global IME Bank, will remain as the Bank's Chief Executive Officer.

21 banks and financial institutions will be merged into Global IME BOK Limited, which will include 5 commercial banks, 10 development banks and 6 finance companies.

Also, both banks have earned more than 1.47 billion rupees in net profit till the end of October. After the merger of the two banks, Global IME BOK Limited will be the largest bank in the country with a total of 385 branch offices, 367 ATM, 275 branchless banking services, 61 extended branch offices, 3 overseas liaison offices, more than 4 million customers and many other financial indicators.

After the merger of the two banks, the bank believes that the capital increase, work area and work capacity of the organization will increase and it will be established in the financial market as the strongest and most capable bank in the country to provide more excellent services and facilities to the customers and give high returns to the investors.

Speaking at the signing ceremony, the presidents of the bank's board of directors expressed their joint commitment that the bank will bring new opportunities in the financial sector and take into account the interests of customers, shareholders, and all those directly or indirectly related to the bank.

Similarly, Global IME Bank Chairman Dhakal said that the banking sector will be developed according to the needs of the country, and said that there will be a need for large and powerful banks to invest in large infrastructure, provide financial access throughout the country and reduce banking costs, and the bank that will be formed after the merger will address that.

Stating that Global IME Bank is always the first to comply with the instructions given by the Government of Nepal and Nepal Rastra Bank, he said that the final memorandum of understanding of this merger was signed accordingly. He also expressed his commitment to make the new bank that will be formed after the merger not only big but also the best bank in all respects.

Stating that the new bank that will be formed after the merger will be number one in all parameters, he said that the bank has reached its present state by working in the interest of the regulatory body and the bank rather than with the aim of becoming number one. Bank of Kathmandu Chairman Shrestha said that the role of banks and financial institutions will be important in the economic development and prosperity of the country.

A big, capable and good bank is needed for the country's economic transformation and economic prosperity. It will be addressed by the Global IME BOK that will be formed after the merger,' he said. He expressed his belief that the new bank formed after the merger will achieve great success in the banking sector of Nepal.

Also, in the program, the presidents of both banks expressed their gratitude to the government, Nepal Rastra Bank, bank directors, shareholders, employees, media sector and other well-wishers who directly or indirectly helped in the process of getting governorship. Radhesh Pant, coordinator of the Joint Merger Committee, said that the Merger Committee works by focusing on the bank's investors, employees and the entire bank, and said that only a big bank can give sustainable and high returns.