The "Big Everest-Laxmi merger" to take more time; Swap-ratio to be unveiled only after Ashadh 22

Despite the completion of Due Diligence Audit (DDA) between Everest Bank Limited (EBL) and Laxmi Bank Limited (LBL), the swap ratio for the merger of the two banks is supposed to take more than estimated time as the party appointed to determine the share price has been delaying the determination of the share price.

Ernst and Young, the appointed audit firm, has already completed the process of DDA and submitted the valuation report. However, the price has not been determined till date as the audit firm has delayed in presenting the swap ratio for the merger of the commercial banks.

Both the banks have directed the firm to conclude the price determination process as quick as possible. In the DDA, the position of Laxmi Bank has been seen strong as compared to Everest Bank.

Currently, Everest Bank has deposits of Rs 1.60 kharba while the deposits of Laxmi Bank amounts to Rs 63.26 arba. The lending of the banks stand at Rs 88.17 arba and Rs 58.69 arba respectively.

The company will be convening its board meeting on Ashadh 22, 2075 after which the swap ratio will be unveiled.

The reports suggests that the bank will engage in official merger process from the start of the next fiscal year.