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Kamana and Sewa Bikash Bank to Merge

image009Kamana Bikash Bank, headquartered at Pokhara and Sewa Bikash Bank, headquartered at Butwal are merging with each other. On this regard, Rajendra Nidhi Koirala, Chairman of Kamana and Bhim Prasad Tulachan, Chairman of Sewa signed a memorandum of association (MoU) on Friday, November 25.
The institutions inform of starting integrated transaction within the coming mid-March. After the merger, the merged entity will be renamed as Kamana Sewa Bikash Bank. Kamana is a national level development bank whereas Sewa has working area of 10 districts. “The paid-up capital of merged entity will reach Rs 1.08 billion after the merger,” said Toyaraj Adhikari, Chief Executive Officer (CEO) of Kamana Bikash Bank. Similarly, deposit collection and investment will reach Rs 11.55 billion and Rs 10.84 billion respectively.
Earlier, Kamana had issued 30 per cent and Sewa had issued 120 per cent right shares. “After the issuance of right shares, the paid-up capital of the bank will reach Rs 2.06 billion,” said Mahesh Prasad Kafle, CEO of Sewa. As per the NRB directive, a development bank must have minimum of Rs 2.5 billion paid-up capital by the end of next FY. “We will be successful to achieve the minimum paid-up capital through the right share issuance and profit of the current FY,” Kafle added.
Following the merger, the merged entity will have Rajendra Nidhi Koirala of Kamana as Chairman, Mahesh Prasad kafle of Sewa as CEO and Yoyaraj Adhikari of Kamana as Deputy CEO. The bank will have central office at Kathmandu. Similarly, the bank will have 40 branches and 12 ATMs.

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