Mega Bank 'Hotcake' for Merger Seekers

Jul 02, 2019 12:59 PM Merolagani

Following NRB's direction to opt for merger, Mega Bank has become hotcake for the other merger seeker commercial banks.  

Mega Bank that is gradually converting itself into a medium level commercial bank has drawn attention from many banks, as per a source. 

The source revealed that commercial banks including Nabil Bank, Global IME and Sanima Bank have approached Mega Bank for merger.

According to the source, minimal bad debt, gradual progress, expanded ownership due to numerous promoter shareholders and steady financial standing after acquiring Tourism Development Bank are the main factors which are drawing the attention of other banks toward Mega Bank.

However, Mega Bank is seeking the best buy among the proposals. The source said that if the bank accepts the merger proposal of Global IME or Sanima, it will not rest for less than 85 percent swap ratio. In the case of Nabil Bank, the swap ratio might be lesser. In any case, the bank will merge with the best conditions.

However, the bank has not come to any conclusion regarding the matter, said the source.

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