Nabil Bank to acquire Nepal Bangladesh Bank, committee formed to complete the merger process

KATHMANDU: The merger process of Nabil Bank Limited and Nepal Bangladesh Bank Limited has finally moved forward. A joint merger committee has been formed to complete the merger of the two banks.

Of late, IFIC Bank of Bangladesh, a major investor in Nepal Bangladesh Bank, has stepped out of Nepal Bangladesh Bank by selling its shares. This has opened doors for Binod Chaudhary, the founding investor of Nabil Bank, to buy the shares of IFIC Bank. Chaudhary will buy the shares of IFIC in Nepal Bangladesh Bank after the merger agreement.

At present, the paid up capital of Nabil Bank is Rs 13.84 billion and the paid up capital of Nepal Bangladesh Bank is Rs 9 billion. Nabil Bank has announced that it will distribute 33.60 per cent bonus shares of the existing paid-up capital and 4.40 per cent cash for tax purposes and a total of 38 per cent dividend from the last financial year’s profit to the shareholders of the company.

Similarly, Nepal Bangladesh Bank Limited has announced to distribute a total of 15.50 percent dividend from the profits of the last fiscal year 2077/78 to the shareholders of the bank by giving 12 percent bonus share and 3.5 percent cash for tax purposes.