KATHMANDU, July 10: Two pairs of financial institutions have received the Nepal Rastra Bank´s (NRB´s) approval for merger.
Issuing a press statement on Tuesday, Infrastructure Development Bank (IDB) said it has received the central bank´s nod to merge with Kathmandu-based Swastik Merchant Finance Company (SMFC).
IDB said it will become a national bank after the merger. The merged entity will continue operation in the name of Infrastructure Development Bank, the statement said.
IDB has a network of 10 branch offices, while SMFC is operating with two branches. After the merger, IDB´s paid-up capital will reach Rs 830 million, reads the statement.
The two institutions have appointed Dr Jib Raj Pokharel as the chairman of the board of directors of the new entity.
Likewise, Banepa-based Pashupati Development Bank (PDB) and Chitwan-based Udhyam Bikash Bank (UBB) have also received the NRB´s nod for merger. The merged entity will operate as Axis Development Bank (ADB), according to a statement.
“After the merger, our paid-up capital will rise to Rs 718.10 million and the total deposits will be at Rs 897.30 million," reads the statement.
The two institutions have appointed Bidur Dhamala as the chairman of board of directors of the merged entity.
"We will start operations as Axis Development Bank from Friday," said the statement.