Integrated Business of Global IME and BOK Starts from Today; How Much is the Joint Paid-Up Capital?

A merger agreement between Nepal's two pioneer commercial banks, Global IME Bank Limited (GBIME) and Bank of Kathmandu Limited (BOKL) was signed on Ashad 2. GBIME and BOKL merged with a swap ratio of 1:1. In other words, shareholders who own 100 shares of Bank of Kathmandu will receive 100 shares of Global IME Bank after the merger.

Likewise, after gaining approval from all the respective authorities, the integrated business of Global IME Bank and Bank of Kathmandu is scheduled to take place today, Poush 25. Global IME Bank Limited has been agreed upon as the name of the new bank that will be formed as a result of the merger. After merging with the Bank of Kathmandu, Global IME Bank will become the largest bank in the country.

Nepal Rastra Bank also gave the final approval for the merger of Global IME and Bank of Kathmandu on Poush 14.

CA Ratnaraj Bajracharya will be the bank's Chief Executive Officer, according to the agreement. He is the CEO of GBIME. Also, after the merger, Bank of Kathmandu CEO Shravan Lal Maskey will become Senior Deputy Chief Executive Officer (DCEO).

There will be 5 Board of Directors (BOD) from GBIME including Chandra Prasad Dhakal and 2 from BOK’s side in the merged entity. 

According to the first-quarter report (Q1) of F.Y. 79/80, the share capital of GBIME is Rs. 24.50 Arba, whereas that of BOKL is Rs. 11.26 Arba. Following their merger, the merged company will have a total paid-up capital of Rs. 35.76 Arba. With this merger, the bank will have the largest paid-up capital in Nepal.

Following their integrated business, the total branches of the merged entity will be 385. Also the number of ATM, branchless banking and the extended counter will be 367, 275 and 61 respectively. There will be 3 contact office internationally. Overall the bank will be able to render its services to more than 37 lakh customers in Nepal. 

Also, the share trading of Global IME Bank Limited is halted for 15 days starting from today for the purpose of matching the shares of the target institution, re-registration of securities, dematerialization and listing of securities.