5 financial institutions announce mergerNepal Credit and Commerce (NCC) Bank and four other development banks have announced merger plan.
Nepal Credit and Commerce (NCC) Bank and four other development banks have announced merger plan.
The merged entity will have a paid-up capital of Rs5.03 billion.
The Nepal Rastra Bank has directed commercial banks to hike their paid-up capital to Rs8 billion in the next two years.
The four development banks are Infrastructure Development Bank, Apex Development Bank, International Development Bank and Supreme Development Bank.
The financial institutions signed a memorandum of understanding (MoU) on Friday, targeting to close the merger by mid-May 2016.
NCC Bank’s management committee chief Laxmi Prapanna Niraula, Infrastructure’s Chairman Iman Singh Lama, Apex’s Chairman Bishnu Prasad Dhital, Supreme’s Chairman Chandra Prasad Bastola and International’s Chairman Madhav Prasad Bhatta signed the MoU.
NCC Bank, which has a paid-up capital of Rs2.02 billion, is under the central bank’s management after its previous management failed to operate bank properly.