A merger agreement between Himalayan Bank Ltd and Nepal Investment Bank Ltd was signed today thus creating the largest private sector commercial bank in the country. The agreement was signed by Prithvi Bahadur Pande, Chairman of Nepal Investment Bank, and Tulasi Prasad Gautam, Chairman of Himalayan Bank.
The banks have said that all the processes related to the merger will be completed within the next two months. Joint operations of the merged entity are likely to start from the beginning of next fiscal year.
The banks have decided to name the merged entity as Himalayan and Nepal Investment Bank and it will be the largest commercial bank with paid-up capital worth over Rs 26 billion. It has also been decided that Pande will be the chairman of the merged entity while Ashoke Rana of Himalayan Bank will be assigned as the chief executive officer. Meanwhile, Jyoti Pandey of Nepal Investment will be appointed as deputy chief executive officer.
Nepal Rastra Bank, Nepal Stock Exchange, Office of the Company Registrar, and Securities Board of Nepal have already been notified by the banks of the merger agreement. As per prevailing laws, share transactions of both the financial institutions will be put on hold until the process to begin joint operations of the merged entity has been completed.
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