RBB, NIDC sign MoU for merger

Kathmandu, August 28

Rastriya Banijya Bank (RBB) and NIDC Development Bank have agreed to begin their joint operation from January 14, 2018. Signing the memorandum of understanding (MoU) here today, both banks have committed to finalise the merger process within the set deadline.

The joint merger committee coordinated by the Joint Secretary at Ministry of Finance, Nirmalhari Adhikari, had finalised the draft of MoU. According to the MoU, the staffers who are working in NIDC will get the same post and facilities as earlier after the merger. “NIDC only has 38 permanent staffers and managing them is not a big deal.”

Board of directors and chief executive officers of both banks signed the MoU. RBB has paid-up capital of Rs 8.5 billion and NIDC has Rs 650 million paid-up capital. NIDC has already finalised due diligence audit (DDA) to begin merger process with RBB. RBB has also already calculated its net worth before starting the merger.

MoF had urged NIDC Development Bank not to extend agreement of staffers hired on contract. Issuing a letter on May 7, MoF had also asked NIDC not to appoint any new staff on contract.

A Cabinet meeting, held on January 27, had also urged both the institutions to expedite merger process. A committee formed under former secretary Prithvi Raj Ligal had also suggested NIDC to merge with RBB or to establish itself as an investment bank in collaboration with Hydropower Investment and Development Company Ltd.