Why could not NIBL, HBL ink merger agreement on scheduled date?

KATHMANDU: Though the merger agreement between Nepal Investment Bank Limited (NIBL) and Himalayan Bank Limited (HBL) was scheduled to take place on Tuesday, the merger agreement will now take few more time.

Merger agreement could not take place on Tuesday after understanding could not be reached on designation that NIBL chief executive officer (CEO) Jyoti Prakash Pandey will have in the new entity. While it has been confirmed that HBL CEO Ashoke Rana will be the CEO of the merged entity, NIBL had been seeking to give Pandey the post of junior CEO in the merged entity.

However, HBL board was against this proposal of NIBL. As this issue had reached the Nepal Rastra Bank (NRB) as well, governor Maha Prasad Adhikari too concluded that there was no provision of senior and junior CEO in banks.

Meanwhile, it is learned that Pandey will be given the post of deputy CEO in the merged entity and other issues have been resolved. As the government has enforced prohibitory order from Thursday, merger between these two entities might still take some more days, said a source.


Fiscal Nepal |
Wednesday April 28, 2021, 05:55:22 PM |

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