1st Big Merger of the country concludes; Global IME and Janata Bank Starts Joint Transaction

Dec 06, 2019 10:50 AM Merolagani

Nepal has witnessed the first big merger of commercial banks on Friday, December 6 under the guidance of Nepal Rastra Bank (NRB) following the initiation of joint transaction of Global IME and Janata Bank after merger.

 

Finance Minister Dr Yubraj Khatiwada inaugurated the joint transaction of the banks amid a special program in the morning of Friday. Global IME and Janata Bank signed the merger agreement on July 5 following the stimulus of NRB for merger through monetary policy.

The banks concluded the merger with a swap ratio of 100:85. The merged entity is called Global IME Bank and the combined entity will have Chandra Dhakal, existing Chairman of Global IME Bank as the Chairman while the post of CEO will be held by Parshuram Kunwar Chettri, existing CEO of Janata Bank.

The board will have five members from Global IME and two members from Janata Bank. Following the merger, Global IME has become the biggest commercial bank with Rs 18.43 billion in paid-up capital. The paid-up capital will further increase to Rs 20 billion after distribution of bonus share announced by the respective banks.

Global IME is distributing 12.75 percent and Janata is distributing 6 percent stock dividend to their shareholders.

The combined entity has deposits of Rs 213 billion, loan extension of 194 billion. The entity is serving its customers through 300 branches, 259 ATMs, 241 branchless banking services and 33 extensions.

Except in net profit, Global IME is leading other commercial banks in all performance indicators including capital, deposit, loan extension, branch offices, employees and others. In terms of net profit, it is behind Rastriya Banijya Bank and Nabil Bank. In the first quarter of the current FY, Global IME logged a combined profit of Rs 112 billion including Rs 753 of Global IME and Rs 366.9 million of Janata Bank.


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