Global IME, Bank of Kathmandu to merge

A preliminary memorandum of understanding (MoU) was signed between Global IME Bank Limited and Bank of Kathmandu Limited for merger on Thursday.

Chandra Prasad Dhakal, Chairman of Global IME Bank, and Prakash Shrestha, Chairman of Bank of Kathmandu Limited, signed the MoU amidst a function.

It has been agreed that the name of the new bank to be formed after the merger will be Global IME BOK Limited.

Similarly, it has been agreed that Ratna Raj Bajracharya will be the chief executive officer of the bank.

A preliminary agreement has been reached to maintain a swap ratio of 1:1 at present, if the swap ratio recommended by Global IME Bank Limited and Bank of Kathmandu Limited is assessed otherwise.

Global IME BOK Limited, which will be formed by merging 21 banks and financial institutions, will include 5 ‘A’ class commercial banks, 10 development banks and six finance companies.

The total capital of the bank after the merger will be Rs. 52.29 billion, paid up capital Rs. 34.41 billion, total deposits of Rs. 384 billion and total loan Rs. 380 billion.

The bank said that it will be the largest bank in Nepal in terms of total capital, paid-up capital and the size of business.

In addition, both the banks have earned a net profit of more than Rs. 6 billion by mid-June.

Global IME BOK Limited will be the largest bank with 385 branch offices, 367 ATMs, 275 branchless banking services, 61 extended branch offices, three overseas contact offices, more than 3.7 million customers and many other financial indicators, it said.

After the merger of the two banks, the bank is confident of increasing its capital, working area and working capacity and establishing itself in the financial market as the strongest and most capable bank in the country to provide effective services and facilities to its customers and give higher returns to investors, read the press statement.

Speaking on the occasion, Global IME Bank Chairman Dhakal said that it was a historic work in the history of banking in Nepal.

He said that Global IME Bank has always been the first to implement the directives given by the government and Nepal Rastra Bank.

He also expressed his commitment to make the new bank to be formed after the merger not only big but also the best bank in all respects.

Chairman of Bank of Kathmandu Shrestha said that the day will always be remembered in the banking sector.

He said that merger is a natural process but the main issue is how to reshape the bank after merger.

He expressed confidence that the new bank would achieve great success in the banking sector of Nepal.