Nepal Rastra Bank (NRB) has given final approval for acquisition of Himalayan Bank Limited (HBL) and Civil Bank Limited (CBL).
According to the NRB officials, the NRB board meeting held last week gave the go ahead for the acquisition process of these two commercial banks. HBL and CBL have agreed to maintain a swap ratio at 100:80.28 for the acquisition.
This means 100 shares of Civil Bank will get converted to 80.28 shares of Himalayan Bank after the acquisition. Two weeks ago, Civil Bank’s 12th AGM endorsed the swap ratio of 100:80.28 that the two banks had agreed earlier.
The unified entity is scheduled to start joint operations from February 13. It will be named Himalayan Bank Limited while the current board members of HBL will be retained in the new organization.
Following the approval for acquisition, the joint organization will have a paid-up capital of Rs 21.65 billion. It will be providing its services from 189 branches spread across the country.
