NIBL starts joint operation with Ace Development BankNepal Investment Bank Limited (NIBL) on Thursday started joint operation with Ace Development Bank after completing the acquisition process.
Nepal Investment Bank Limited (NIBL) on Thursday started joint operation with Ace Development Bank after completing the acquisition process. After acquiring the Ace Development Bank, the total paid-up capital of NIBL reached 9.24 billion, which is the highest among others private sector commercial banks and Rs 1.24 billion more than regulatory requirement of Rs 8 billion.
NIBIL had initiated the acquisition of the development bank in August 2016 after the two organisation signed memorandum of understanding on that regard.
The Management Committee and the Chief Executive Officer of the bank will remain unchanged even after the acquisition process, according to the press statement issued by the bank. Also, the Head Office will remain at Durbarmarg, Kathmandu. After acquiring Ace Development Bank, NIBL total deposit reached Rs124 billion and total loan and advances has reached Rs107 billion. Similarly, the bank’s capital adequacy ratio has reached 13.9 percent, according to the bank.
Ace had been in operation since 1995 with a total of 12 branches, 12 automated teller machines (ATM) and an extension counter. With this acquisition, NIBL will now have a network of 61 branches, 98 ATMs and 4 extension counters. The branches of Ace Development Bank inside the valley are at Naxal, New-road, Chabahil, Jawalakhel, Kaushaltar and Kirtipur. Similarly its branches outside the valley is located at Birgunj, Chitwan, Pyuthan ,Bharatpur, Morang ,and Sankhuwashaba.
Nepal Investment Bank is the only commercial Bank to be awarded with the prestigious Financial Times “Bank of The Year” award for the fifth time in 2016 and has been consistently receiving ICRA credit rating Nepal ‘A’.
With Nepal Rastra Bank (NRB)—the regulatory authority of the banking industry- directing commercial banks to increase their paid-up capital to Rs 8 billion by the end of the current fiscal year, they have been exploring merger and acquisition as well as issuing right shares and further public offerings (FPO) to meet the capital requirement.