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Merger of 5 Nepali financial institutions

Financial institutions in Nepal
Mahalaxmi Finance Ltd
Birgunj Finance Ltd
Siddhartha Finance Ltd
Butawal Finance Ltd
Himchuli Development Bank

Everest finance
Ime Financial institution
Business Development Finance Inst.

Nawa Durga Finance Co
Standard Finance Limited
Capital Merchant Banking & Finance
Hama finance
Good deposit schemes, 1 year fixed 7%, 3 year even 8%
National finance Co.
Annapurna finance company
Ace finance company
Gorkha finance
Universal finance

Nawa Kantipur
Deposit and loan schemes

 

News item 30-4-2008

Five financial institutions — Mahalaxmi Finance Ltd, Birgunj Finance Ltd, Siddhartha Finance Ltd, Butawal Finance Ltd and Himchuli Development Bank — have signed an accord yesterday to merge and upgrade to ‘A’ level commercial bank. “All the financial institutions are planning to increase their paid up capital to Rs 400 million each to make Rs 2 billion in total required for the upgradation for the commercial banks,” said Ramesh Kumar Bhattarai, coordinator of the Merger committee. The proposed ‘United Bank of Nepal’ after the merger, will have head office in Kathmandu, according to the Memorandum of Understanding (MoU). However, the companies that have currently Rs 50 million to 100 million paid up capital have to increase to Rs 400 million each to make a total of Rs 2 billion required for a commercial bank. “We will hold special AGM and propose 1:4 rights shares,” informed Bhatta-rai, without clarifying what will happen if they cannot raise paid up capital to almost four to eight times. Mahalaxmi Finance, National Finance and Narayani Finance have earlier declared a merger for upgradation to a Development bank.
 

 

 

 

Other finance articles:

4 years Birgunj Finance (1-10-2007)
foreign employment insurance scheme forwarded to Ministry of Finance (26-8-2007)
Real estate is interesting niche for investment (29-6-2007)

5 years International Money Express (14-6-2007)
Imperial Finance to issue shares  (6-2-2007)
Foreign aid increases (3-2-2007)

IME gets permission for foreign exchange business (2-2-2007)
 

 

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