July 7: Global IME Bank has announced its merger with Janata Bank Nepal in line with the directive of Nepal Rastra Bank (NRB) to raise the paid-up capital of banks and financial institutions (BFIs) through merger and acquisition.
Chandra Dhakal, chairman of Global IME Bank, and Keshav Bahadur Rayamajhi, chairman of Janata Bank Nepal, signed the merger agreement on behalf of their respective organizations amid an official event on Friday, July 5. The agreement was signed after the two banks finalized the name, CEO and board members of the merged entity.
According to the agreement, both sides have agreed to name Parshuram Kunwar Chhetri as the chief executive officer and Mahesh Dhakal as the deputy chief executive officer of the merged entity. Likewise, the parties have agreed that the bank’s name will remain ‘Global IME Bank’ even after the merger.
According to the agreement, the banks have set the share swap ratio of 1:0.85, which means investors holding 100 unit shares of Janata Bank Nepal will receive 85 unit shares of Global IME following the merger. However, Keshav Bahadur Rayamajhi, chairman of Janata Bank Nepal, said this is only a preliminary understanding on share swap ratio which is subject to change by the merger committee.
Rayamajhi informed that the paid-up capital of Global IME bank is around Rs 10 billion and that of Janata Bank Nepal is around Rs 8 billion. That is the reason why Janata Bank Nepal agreed to name the merged entity as Global IME Bank.
Following the merger, the joint paid-up capital of the bank will stand at Rs 18.39 billion.
Earlier, NRB Governor Chiranjivi Nepal had instructed BFIs to find suitable partners for merger and acquisition before the announcement of the monetary policy.