KATHMANDU, JAN 09 - In a historic decision in the Nepali financial sector, Laxmi Bank, a commercial bank, and Hisef, a finance company decided to merge the companies into a single financial unit of Laxmi Bank.
The respective boards of these institutions, in separate decisions, have agreed to a proposal of executing a merger at 1:1. "Nepal Rastra Bank (NRB), the central bank of the country, has also given its in-principle- approval for the merger," states a press release issued today.
As a part of the financial sector reform, the central bank has been encouraging merger and acquisition to strengthening the competitiveness of the Nepali financial services companies, particularly in the context of Nepal acceding the World Trade Organisation (WTO).
However, both these financial institutions require an approval of forthcoming annual meeting to execute the decisions. Both these financial institutions have common investors and are in similar lines of business.
While Hisef has been operational since 1995, Laxmi Bank has been in business for one year and a-half.
Also the shares of Laxmi Bank are in process of being listed with the stock exchange in near future, while Hisef’s share with a face value of Rs 100 was last traded for Rs 116.
The release further states that the post merger Laxmi Bank will have a paid up capital of Rs 610 million, highest among banks in the country. The bank has also stated of exploring other opportunities for merger and acquisition in the future too.Posted on: 2004-01-10 02:31

Post Your Comment

Please note that all the fields marked * are mandatory.

* Full Name

* Address

* Email Address

* Comment
[Some of the HTML tags you can use : <b>, <i>, <a>]

* Captcha

Get another CAPTCHA code