Kathmandu, March 14

Yeti Development Bank (YDB) and Mahalaxmi Bikas Bank (MBB) have signed a pact for merger on Tuesday. The pact was signed by coordinators of merger committee of the two banks — Sanjaya Giri of MBB and Arjun Prasad Sharma of YDB.

The merger committee also informed that the new entity will be named ‘Mahalaxmi Bikas Bank’ after the merger. Issuing a press statement, officials said that the paid-up capital of the new Mahalaxmi Bikas Bank will reach Rs 2.63 billion after the merger. National-level development banks are required to raise their paid-up capital from Rs 640 million to Rs 2.5 billion within the end of this fiscal year as per an earlier direction of Nepal Rastra Bank.