Civil signs agreement

KATHMANDU: A final agreement has been signed for the acquisition of Hama Merchant and Finance Ltd and Unique Finance Ltd by Civil Bank Ltd.

Chairman of Civil Bank Ichchha Raj Tamang, Chairman of Hama Merchant and Finance Rajan Krishna Shrestha and Chairman of Unique Finance Binod Bahadur Khatri signed an agreement to this effect. Post-merger, the name of the merged entity will be Civil Bank Ltd and the current composition of the board of directors and senior management of Civil Bank will remain the same.

The three institutions have successfully mobilised total deposit of Rs 33.63 billion and achieved total loan figure of Rs 31.68 billion. “After the merger, the paid-up capital of Civil Bank will reach Rs 5.05 billion and the number of branches will increase to 53,” said Kishore Maharjan, CEO of Civil Bank. After acquisition of both the financial institutions, the bank has planned to distribute 20 per cent rights share from profit of fiscal 2015-16, and the remaining capital as per requirement set by Nepal Rastra Bank will be collected through further acquisitions and mergers, as per a statement.