NIBL, Mega Bank preparing to ink merger agreement today evening

KATHMANDU: Nepal Investment Bank Limited (NIBL) and Mega Bank Limited are preparing to ink merger agreement today.

As per sources, two banks are likely to ink merger agreement later in the evening today (Friday).

NIBL, one of the leading commercial bank in Nepal, had been looking for new partner after failure to ink merger agreement with the Himalayan Bank Limited.

NIBL and Mega Bank are about to merge in the ratio of 100:90 and if everything go uninterrupted, these banks will ink merger agreement within next few weeks, as per sources.

It has been learned that both banks have agreed to operate in the name of Investment Mega Bank after the merger under the chairmanship of Prithvi Bahadur Pandey and and Jyoti Pandey as the chief executive officer of the merged entity.

Though NIBL had almost reached merger agreement with the Himalayan Bank, the process came to an end after the general meeting of Himalayan Bank Limited rejected the merger proposal with NIBL.

At present, the share price of Mega Bank is Rs 234 per share in the secondary market while that of NIBL is Rs 307 per share.

NIBL has Rs 18.30 billion paid-up capital while Mega Bank has Rs 16.12 billion paid-up capital. Once these banks get merged, the new entity will have more than Rs 34 billion paid-up capital.