NIBL, Mega Bank ink merger agreement; becomes largest bank with Rs 32 billion paid-up capital

KATHMANDU: A merger agreement has been signed between Nepal Investment Bank Limited (NIBL) and Mega Bank today.

NIBL acquired the Mega bank at the rate of Rs 90 per share meaning that shareholders of Mega Bank with 100 shares will get 90 shares of NIBL following the merger.

With these banks inking the merger agreement, share trading of both of these banks will be suspended from Monday.

After the merger, the new entity will be named as ‘Nepal Investment Mega Bank’ under the chairman of Prithvi Bahadur Pandey, the current chairman of NIBL.

The bank will be managed by Jyoti Prakash Pandey, the current CEO of NIBL while Raveena Deshraj Joshi, the current CEO of Mega Bank, will be the deputy CEO of the new bank.

Rastriya Beema Samiti (12.15%), Mahalaxmi Investment (7.15) and Chhaya Investment (6.65), among others are the major investors in NIBL.

The total share of Citizens Investment Fund, which has the largest share in Mega Bank, is only 0.8 percent. This is followed by Butwal trader Bal Krishna Bhusal with 0.77 percent, Resu Agrawal with 0.63 percent and Shantakumari Kadel with 0.57 percent.

At present, the paid up-capital of NIBL is Rs 18.30 billion. Similarly, the paid-up capital of Mega Bank is Rs 16.12 billion. The paid-up capital of the merged entity will reach Rs 32.81.