Nabil, NB become one bank

By A Staff Reporter Kathmandu, July 13: Nabil Bank has announced the completion of the Nepal Bangladesh (NB) Bank acquisition process. The two banks started their integrated transitions as Nabil Bank Limited from Monday, July 11. The central bank has allowed the two banks to start their integrated transitions. 

Nabil has acquired Nepal Bangladesh Bank Limited with the permission from the Nepal Rastra Bank. With the completion of this acquisition process, Nabil bank has received all the capital and financial responsibilities of NB Bank, Chairman of the former, Upendra Poudyal, said at a programme organised to announce the joint operation on Monday evening. 

"The two banks have reached an understanding to take the lead in nation-building by expanding and strengthening the esteemed institutions that have been playing a leading role in Nepal's financial sector," he said.

The bank said that it has become the largest financial institution in the country after the acquisition.

"After discussing the need for acquisition and justification of Nabil Bank and NB Bank, we have taken steps to further enhance the public's trust in the bank, taking into account the needs of the overall banking system," said Gyanendra Dhungana, Executive Director of the bank. 

He informed that an understanding has been reached between the two banks with the objective of taking the lead in nation building by expanding and strengthening the institutions that have been playing a leading role in Nepal's financial sector.

According to him, the stability of the banking sector would be supported by making the banking system more well-governed, secure, clean, efficient and capable. The aim is to provide more modern banking facilities to the general public by enhancing the banking system, human resources, technical and other overall capacity as the bank grows. 

“We will protect the interests of our depositors, investors and other stakeholders," Dhungana said. 

The two class 'A' banks had reached an agreement for the acquisition in January this year with the swap ratio of 100:42.