Global IME Bank Limited and Bank of Kathmandu (BOK) on Monday signed a final memorandum of understanding for a merger.

After the merger, the bank will become the largest commercial bank in Nepal with a total capital of Rs57 billion, the bank said in a statement.

The bank’s paid-up capital will reach Rs35.77 billion with total deposits of Rs400 billion and loans of Rs379 billion.

Global IME Bank Chairman Chandra Prasad Dhakal and BOK Chairman Prakash Shrestha signed the memorandum of understanding for the merger amidst a programme in Kathmandu on Monday.

Previously, the board of directors of both banks had approved the share swap ratio of 1:1, determined based on the evaluation report of movable and immovable assets, liabilities and transactions received from the appraiser for the purpose of merger between the two banks.

According to the bank’s statement, the name of the new bank will be Global IME BOK Limited.

The bank will consist of seven board of directors—five from Global IME Bank including its chairman Dhakal. There will be two board of directors on behalf of Bank of Kathmandu.

Ratnaraj Bajracharya, chief executive officer of Global IME Bank, will remain as the chief executive officer of the new bank.

After the merger, Global IME BOK Limited will have 385 branch offices, 367 ATM counters, 275 branchless banking services, 61 extended branch offices and 3 foreign contact offices, the bank said in a statement.

The new bank will have more than 4 million customers.

Speaking at the signing ceremony, Dhakal said there is a need for large banks to invest in big infrastructure projects.

On the same occasion, Shrestha said that for the country’s economic transformation, there is a need for big and capable banks. “We hope that the Global IME BOK Limited will achieve success and contribute to the country’s economic prosperity.”