Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: In a significant move within Nepal’s financial sector, Pokhara Finance Limited and Samriddhi Finance Company Limited have signed a merger agreement, aiming to begin integrated operations by Mangsir (November/December 2025) after completing all regulatory procedures. The merger deal was signed on Sunday in Pokhara, confirming the unification of the two institutions under an equal-valuation basis.
The Memorandum of Understanding (MoU) was signed by Sudip Ghimire, coordinator from Samriddhi Finance, and Til Bahadur Gurung, coordinator from Pokhara Finance. Both companies have formed a merger committee comprising three members each, tasked with facilitating the consolidation process.
According to the agreement, the post-merger entity will retain the name “Pokhara Finance Limited”. The Chairman of the new Board of Directors will be appointed from Samriddhi Finance, while the board will consist of four members from Samriddhi Finance and three from Pokhara Finance. The decision regarding the new Chief Executive Officer (CEO) remains pending.
The two institutions have also agreed to complete the Due Diligence Audit (DDA) within 60 days, based on the financial reports as of the end of Ashad, 2082 BS (July 2025). The audit will evaluate all assets and liabilities to ensure a fair and transparent merger process.
This merger is part of a broader trend encouraged by the Nepal Rastra Bank (NRB) to strengthen the financial system by reducing the number of smaller, fragmented institutions and building more robust and competitive financial entities. The central bank’s focus on capital adequacy, corporate governance, and long-term sustainability has accelerated such mergers and acquisitions across the banking and financial sector.
The merged entity is expected to expand its operational reach, enhance customer service, and improve digital financial infrastructure. If the process goes as planned, the unified company will be among the strongest finance companies in Nepal, creating ripple effects across the industry.
Nepal’s financial sector continues to see consolidation moves driven by regulatory push, competition, and the rising demand for digitized and capital-strong institutions. This merger is expected to bring greater financial stability, better service delivery, and increased investor confidence.
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