Global IME Bank and Commerz and Trust Bank have signed the final Memorandum of Understanding (MoU) for merger.Global IME Chairman Chandra Prasad Dhakal and Shovakar Neupane, chairman of Commerz and Trust Bank, signed the MoU on behalf of their respective organizations amid a function here on Tuesday.
Dhakal told Republica that the merged entity will be named Global IME Bank. “We´ve agreed to retain the chairman and CEO of Global IME Bank. A board member of Commerz and Trust Bank will be inducted in the board of the merged entity,” added Dhakal.
The two Class ´A´ banks have agreed to complete the merger process by mid-April. Both the banks have scheduled their annual general meetings (AGMs) next month to get their merger proposals endorsed. While Commerz and Trust is holding its AGM on March 3, the AGM of Global IME is slated for March 5.
Dhakal said plans were afoot to start joint transactions from mid-April. “Hopefully we will be able to publish our third quarterly financial report from the merged entity,” he added.“We decided to go for merger as it increases our capital base as well as enhance our capacity to invest in large-scale projects,” Dhakal said, adding, “The merger will become a merger in real sense because we are merging with a new partners which will bring synergy in the banking system.”
Post merger, Global IME Bank will be the largest private bank in the country in terms of paid-up capital. It will have paid-up capital of Rs 4.1 billion.This would be the second merger of commercial banks in the country. Earlier, NIC Bank and Bank of Asia merged to form NIC Asia Bank in July last year.
Banks and financial institutions (BFIs) are on a merger spree after Nepal Rastra Bank (NRB), the central bank, issued Merger Bylaws in May 2011. Since then, a total of 43 BFIs have undergone mergers to form 18 institutions.
source:republica,25 feb 2014
LINK
Dhakal told Republica that the merged entity will be named Global IME Bank. “We´ve agreed to retain the chairman and CEO of Global IME Bank. A board member of Commerz and Trust Bank will be inducted in the board of the merged entity,” added Dhakal.
The two Class ´A´ banks have agreed to complete the merger process by mid-April. Both the banks have scheduled their annual general meetings (AGMs) next month to get their merger proposals endorsed. While Commerz and Trust is holding its AGM on March 3, the AGM of Global IME is slated for March 5.
Dhakal said plans were afoot to start joint transactions from mid-April. “Hopefully we will be able to publish our third quarterly financial report from the merged entity,” he added.“We decided to go for merger as it increases our capital base as well as enhance our capacity to invest in large-scale projects,” Dhakal said, adding, “The merger will become a merger in real sense because we are merging with a new partners which will bring synergy in the banking system.”
Post merger, Global IME Bank will be the largest private bank in the country in terms of paid-up capital. It will have paid-up capital of Rs 4.1 billion.This would be the second merger of commercial banks in the country. Earlier, NIC Bank and Bank of Asia merged to form NIC Asia Bank in July last year.
Banks and financial institutions (BFIs) are on a merger spree after Nepal Rastra Bank (NRB), the central bank, issued Merger Bylaws in May 2011. Since then, a total of 43 BFIs have undergone mergers to form 18 institutions.
source:republica,25 feb 2014
LINK
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