According to a source, Everest Bank has stressed on implementing a swap ratio based on the financial report of the last FY of Laxmi Bank other than the due diligence audit (DDA) report of the banks.
Noticeably, Everest Bank seems reluctant to the merger. The bank is trying to merge Laxmi Bank with minimum possible swap ratio.
The previously conducted DDA report of the banks suggested a swap ratio of 100:60 to Everest and Laxmi Bank, however, Everest Bank seems unhappy with the figure. Thus, the bank again lined up a condition that the swap ratio should be based on the fourth quarter financial report of the last FY.
In the mean time, Laxmi Bank is complying with all the conditions lined up by Everest Bank. The bank has even compromised on issue of representation in BOD of the merged entity.
Eyeing the merger, Laxmi Bank extended the tenure of its CEO Sudesh Khaling for three months that ended on August 26. Since the date, the bank is operating without a CEO.
Laxmi Bank presumes that the new analysis will give a swap ratio of 100:54; however, it is up to Everest Bank if it accepts the swap or not, says Laxmi Bank.
