'Mega to prioritise M&A in the future'

Kathmandu, July 22

At a function organised on the occasion of the sixth anniversary of Mega Bank, Chairman of the bank Bhoj Bahadur Shah announced to take the bank forward in accordance to the federal structure and will prioritise mergers and acquisition to establish itself as a leading bank in the country.

“Besides merger and acquisition, Mega plans to issue rights shares to achieve the capital enhancement limit enforced by Nepal Rastra Bank,” said Shah, according to a media release issued today.

Chairman Shah informed that Mega has already merged with Paschimanchal Development Bank and is also holding discussions regarding a few new merger proposals. “We will soon decide whether to go for another merger or to issue rights shares, which will be decided through internal discussions.”

The release further says that the bank will now focus on initiating joint venture operations outside the nation, expansion of regional level offices and expanding its banking services to rural areas as well.

“Mega is preparing to issue 25 per cent rights shares to its shareholders,” the release quotes CEO Anil Keshary Shah, as saying. “The formal procedure has been initiated and as per NRB guidelines, promoter shares are to be converted into public shares. This will enhance the investment capacity of the investors.”

In the last fiscal year, Mega Bank increased its deposit portfolio by Rs 10 billion to reach Rs 31 billion. Likewise, it has increased its loan portfolio by Rs 10 billion as well, that is, from Rs 18 billion to Rs 28 billion. Its customer base has reached 250,000 as against 143,000 in the previous fiscal. The bank’s average loan is Rs 2.55 million and average deposit is Rs 144,000.

During the event, Mega Chairman Bhoj Bahadur and CEO Anil Keshary handed over a cheque of Rs 90,000 to Children and Youth First, an NGO working to provide quality education and a good childhood to Nepal’s most underprivileged children. The organisation headed by Hausala Thapa has been supporting the education of 55 marginalised children in a full boarding school. The supported children are mostly from single mothers who are financially weak or belonging to financially weak backgrounds, the release says.