Nepal Rastra Bank exits NCCNepal Rastra Bank (NRB) on Monday exited Nepal Credit and Commerce (NCC) Bank after taking over the NCC board for three years.
Nepal Rastra Bank (NRB) on Monday exited Nepal Credit and Commerce (NCC) Bank after taking over the NCC board for three years.
The regulator handed over the bank’s board to an ad-hoc committee following its merger with four other financial institutions.
NRB had taken over NCC following rifts among its board members. NRB Director Laxmi Prapanna Niraula and two other officials had been assigned to settle the dispute and complete the merger.
“Completing the merger was one of the major assignments mentioned in the terms of reference given to our team,” said NRB Spokesperson Narayan Prasad Poudel. “As our team was successful in completing the merger, we exited the bank.”
Also, the dispute among the promoters has been resolved and the bank now is financially sound, he said.
The bank on Sunday completed its merger with Infrastructure Development Bank Limited, Apex Development Bank Limited, Supreme Development Bank Limited and International Development Bank Limited and started operation as a single entity under Nepal Credit and Commerce (NCC) Bank Limited. Nepal Rastra Bank Governor Chiranjibi Nepal inaugurated the operation of the merged entity amid a ceremony at NCC’s corporate office in Bagbazar, Kathmandu.
After the merger, the paid-up capital of the bank has reached Rs4.67 billion, with total deposit of Rs55 billion and total lending of Rs44 billion. The five entities had filed an application at NRB on November 27, 2015, seeking permission to merge. They had received the approval in principle from the regulator in mid-March 2016.
The five institutions then acquired approvals from their respective annual general meetings and conducted due diligence audit before getting final approval from NRB December 5, 2016.
The merged entity recently got approval from the Office of Company Registrar.