MoU signing between NMB Bank and Om Development Bank for merger; merged entity will be called NMB Bank

NMB Bank and OM Development Bank formally sign an agreement today to merger both institutions and form a new financial institution named NMB Bank Limited.

NMB bank that stands today was established 23 years ago and has become what it is today from the merger of different banks 4 years ago and so far it has set a great example of a successful merged entity. NMB bank has been nominated as Bank of the year for two years in a row.

Om development bank was established 12 years ago and it also has gone through multiple mergers, making it one of the successful development bank in Gandaki region.

Merged entity will be named NMB bank and will be employing more than 15,00 employees in total. CEO of NMB bank, Sunil KC says, “We have been focusing on agro based banking and we think that through this merger we will be able to create a synergistic effect in the agricultural industry. We are not just aiming for 1+1=3 kind of synergy, but rather 1+2=12. We are working towards the future of Nepal and we have committed to complete the merger process within 2 months at max.”

Merger committee coordinators, Pradeep Raj Pandey on behalf of NMB bank and Yogendra Lal Pradhan on behalf of Om Development Bank signed the MoU for merger.

Speaking at the ceremony Merger committee coordinator, Mr. Yogendra Lal Pradhan says, “NMB bank is one of the best bank in terms of business volume, branch and ATM network and client portfolio. We think this along with the fact that the bank is being headed by someone as visionary as Sunil KC is a noteworthy characteristic to be considered for merging with them. We are capable of staying as Om Development Bank both in terms of paid up capital, management and business and we’ve been frequently asked why we are going for merger. The reason we are going for merger is because we want to expand our horizon, reach to a larger audience and create an impact greater than we had yesterday. We want to be more responsible to our shareholders and our customers alike. I assure that this merger will be an example, we’ll complete the process in shortest possible time and then start joint transactions.”

Merger committee coordinator, Mr. Pradeep Raj Pandey says, “I’ve been teaching Merger procedure to MBA students and now that I’m in this committee, I’m elated. We are a commercial bank and we for sure are a profit making institution, but saying that I’d also like to emphasize that we are committed to the development of this country with prime focus on agriculture and energy sector.”

The merger between PCBL and ODBL had broken due to employee placement issue, addressing this issue Chairman of ODBL said, “We had asked to complete the merger but due to PCBL’s internal employee-related problem, the process was delayed. Then due to delay they announced AGM and bonus alongside it, which was against the 19th point of our MoU. In such distress we got a call from Sunil KC expressing interest. He said that FMO is employing more flexible approach now, previously you had come to us but we couldn’t do it, but now we welcome you. Then we accepted their invitation and moved ahead with their process. I assure you that this merger won’t be having such problem.”

The swap ratio will be based on DDA and both the bank has agreed to move with whatever the result of DDA is. Addressing the HR related issues that happened between PCBL and ODBL, Mr Sunil KC assured that they have already set an example of successful mergers in history and they will be diligently managing the Human resources of both the banks.