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June 2: Kailash Development bank, Metro Development bank and Nepal Express Finance have started their joint transaction from May 30. “The transaction has been started with the name of Kailash Bikash Bank after the merger between the three financial institutions,” informs the company in a press statement. “The joint transaction has started with the inauguration of new building of the bank in New Road, Pokhara by Chiranjibi Nepal, Governer of Nepal Rastra Bank,” reads the statement. The three financial institutions had signed an agreement for merger on Kartik 2072. According to the bank, the merged entity has the operating capital of Rs 1.58 billion.
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Surya Prasad Tiwari, CEO OF Metro Bank has been assigned the post of Vice-General Manager in the merged bank. “The merged bank has become the number one development bank in terms of deposits collection, capital and loan flow,” claims the CEO of the merged bank. According to Lamichhane, the bank will distribute 25 percent bonus and 20 percent right shares to the shareholders from the profit of the current fiscal year so as to make paid-up capital Rs 2.5 billion by the end of FY 2073/2074. The bank has also planned to re-issue right shares to meet the paid-up capital. After the merger, the central office of the bank will be in Kathmandu while the regional office will be in Pokhara.
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