POKHARA, Dec 25, 2012
Api Finance of Kaski, Royal Merchant Banking and Finance of Kathmandu and Rara Development Bank of Surkhet have ramped up merger process to create a national-level development bank by mid-March 2013.
Once the merger process is complete, the consolidated unit will have a paid-up capital of around Rs 700 million.
The three units, which signed a memorandum of understanding on merger in July, obtained preliminary approval to consolidate the unit around two months ago. Since then the three have obtained green signal from their shareholders to go ahead with process, and are currently conducting due diligence audit.
“The due diligence audits of three units are scheduled to complete within mid-February 2013,” Dhruba Raj Tiwari, CEO of Api Finance told Republica. He informed: “So far we have completed studies of loans of over Rs 5 million extended by three institutions. At this pace, we are confident about wrapping up the entire consolidation process within mid-March.”
Once the merger process is complete, the consolidated unit will have its head office in Kathmandu with regional offices in Pokhara and Surkhet,” Tiwari said. Royal Merchant and Rara, which have paid-up capital of Rs 329 million and Rs 200 million respectively, have three branch offices each, while Api, which has paid up capital of Rs 126 million, has seven branch offices. Rara, which recently obtained regulator´s permission to expand its work area from one to three districts, is soon opening branch offices in Bardiya and Nepalgunj.
Together, the new unit will have 16 branch offices in nine districts of the country, with number of employees standing at 120.
“As per the agreement, staff employed at regional and other branch offices will not be transferred within first six months of completion of merger process,” Tiwari said. “We are also planning to open 10 new branch offices within a year of merger.”
In terms of liabilities and assets, Royal Merchant mobilized Rs 2.35 billion of deposits as of mid-December and extended loans of Rs 1.95 billion in the same period. Api, on the other hand, collected Rs 1.05 billion of deposits and extended Rs 950 million credit till mid-December, while Rara mobilized Rs 450 million in deposits and disbursed Rs 360 million in loans till the same period.
Suresh Bam, CEO of Rara Development Bank, informed issues on workload distribution have also been settled.
Source: Republica
Api Finance of Kaski, Royal Merchant Banking and Finance of Kathmandu and Rara Development Bank of Surkhet have ramped up merger process to create a national-level development bank by mid-March 2013.
Once the merger process is complete, the consolidated unit will have a paid-up capital of around Rs 700 million.
The three units, which signed a memorandum of understanding on merger in July, obtained preliminary approval to consolidate the unit around two months ago. Since then the three have obtained green signal from their shareholders to go ahead with process, and are currently conducting due diligence audit.
“The due diligence audits of three units are scheduled to complete within mid-February 2013,” Dhruba Raj Tiwari, CEO of Api Finance told Republica. He informed: “So far we have completed studies of loans of over Rs 5 million extended by three institutions. At this pace, we are confident about wrapping up the entire consolidation process within mid-March.”
Once the merger process is complete, the consolidated unit will have its head office in Kathmandu with regional offices in Pokhara and Surkhet,” Tiwari said. Royal Merchant and Rara, which have paid-up capital of Rs 329 million and Rs 200 million respectively, have three branch offices each, while Api, which has paid up capital of Rs 126 million, has seven branch offices. Rara, which recently obtained regulator´s permission to expand its work area from one to three districts, is soon opening branch offices in Bardiya and Nepalgunj.
Together, the new unit will have 16 branch offices in nine districts of the country, with number of employees standing at 120.
“As per the agreement, staff employed at regional and other branch offices will not be transferred within first six months of completion of merger process,” Tiwari said. “We are also planning to open 10 new branch offices within a year of merger.”
In terms of liabilities and assets, Royal Merchant mobilized Rs 2.35 billion of deposits as of mid-December and extended loans of Rs 1.95 billion in the same period. Api, on the other hand, collected Rs 1.05 billion of deposits and extended Rs 950 million credit till mid-December, while Rara mobilized Rs 450 million in deposits and disbursed Rs 360 million in loans till the same period.
Suresh Bam, CEO of Rara Development Bank, informed issues on workload distribution have also been settled.
Source: Republica
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