Global IME Bank and BoK seek NRB’s approval to conclude merger

KATHMANDU: Global IME Bank Limited (GIBL) and Bank of Kathmandu (BoK), which are in the process of merger, have sought the final approval from Nepal Rastra Bank (NRB).

For this purpose, the two banks on Wednesday jointly filed an application at the NRB. GIBL Chairman Chandra Prasad Dhakal and BoK Chairman Prakash Shrestha forwarded the application to NRB Governor Maha Prasad Adhikari.

On June 16, GIBL and BoK inked a Memorandum of Understanding for merger, while the final agreement was signed on November 14.

The annual general meeting of both the banks held on December 9 endorsed the merger plan. Both the banks have consented to unify by maintaining a swap ratio of 1:1.

It has been agreed that following the merger, the new entity to be formed will be named ‘Global IME BoK Limited.’ It will have a paid-up capital of Rs 34.41 billion, which will be the largest among the capital bases of the commercial banks. Likewise, the reserve fund will reach Rs 17.87 billion.