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Bank of Kathmandu Lumbini Starts Operation

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Bank of Kathmandu Lumbini Starts Operation
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July 15: Bank of Kathmandu (BOK) and Lumbini Bank have merged with each other and started operation with the name of Bank of Kathmandu Lumbini Ltd. After annual general meetings of both banks endorsed the merger proposal, they got the final approval for merger from Nepal Rastra Bank on July 8. The both banks had signed the agreement paper and submitted the joint application to NRB last year for the merger. After merger, the paid-up capital of bank has reached Rs 4.57 billion. The share swap ratio of BOK and Lumbini bank was decided to 1:0.83 ratio.

Satya Narayan Manandhar, Chairman of BOK and Ajay Shrestha, CEO of BOK will be the Chairman and CEO of new entity too.

According to Manandhar, he aims to make the newly merged bank to the top 5 banks of Nepal.  Speaking in the program, Chiranjivi Nepal, Governor of NRB suggested of investing in far-western region stating 60 percent people of the country are deprived from banking financial services. He added, "After merger, the bank has become more competitive and can show its presence in national level. Let’s utilise the investment opportunities inside the country."

After merger, the number of branches and ATMs has reached 74 and 63. Similarly, the bank has Rs 62 billion in deposits and loans of Rs 54 billion. 

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