NCC Bank and Kumari Bank Sign Agreement to Merge At a Swap Ratio of 1:1

Nepal Credit and Commerce Bank Limited (NCCB) and Kumari Bank Limited (KBL) are set to merge into one entity.

In front of the directors of both banks, an initial MoU was signed on Monday during a meeting of the joint merger committee of the two banks. The two banks have decided on a 1:1 share swap ratio.

As per the initial agreement, Ramesh Raj Aryal will be the Chief Executive Officer of the bank, while Ram Chandra Khanal of Kumari Bank will be the Senior Deputy Chief Executive Officer. After the merger, the name of the bank will be Kumari Bank.

While KBL's paid-up capital is Rs 14.71 Arba, NCCB's paid-up capital is currently Rs 11.13 Arba.

Following the integrated transaction, Kumari Bank Limited's total paid-up capital will be Rs 25.84 Arba.

There are 195 ATMs in total at Kumari Bank, compared to 156 in NCC Bank. After the merger, the combined company will have 351 ATMs overall.

In addition to the extension counter, there will be 355 branches. As of September 25, 2022, NCCB and KBL's last trading prices were Rs. 184 and Rs. 186, respectively.

Just last fiscal year- 78/79, out of the total 27 commercial banks in Nepal, Nabil Bank acquired Nepal Bangladesh Bank and likewise, Himalayan Bank acquired Civil Bank and Prabhu Bank acquired Century Commercial Bank Limited. In the same vein, Nepal Investment Bank and Mega Bank merged and Global IME and Bank of Kathmandu merged with each other.

Now with the merger of NCCB and KBL, the total number of commercial banks in Nepal is reduced to 21.