Will the two Commercial Bank experience the biggest merger in Nepalese banking history ?

There might be not be any single person in nepalese stock market who haven't heard about the merger between two big commercial banks, Laxmi and Everest. Many took it as a hoax, however this might not be limited only to a rumor now. The representative of both the banks are fully positive about it and the DDA work have already started by the indian company, along with the Nepali team, after getting an approval from the central bank.

The DDA will complete within a couple of months, and the matter will move ahead as per the DDA report. The Due diligence audit (DDA) report will finalize the swap ratio for the merger and the representative of both the companies have agreed to respect the decision. "The decision of merger will hopefully be positive. In case not, the decision will be finalized by the end of this fiscal year." representative of laxmi bank said. 

What again has amplified the possibilities of merger is the nature of both the banks. Both are ready to sacrifice their Seats in board, Chairman, Name of the organisation, CEO in the merged company, if the situation demands. A Professional person can also be hired and handed over with a responsibility, if that makes the company better. Though both the banks individually approached numerous other banks, the talks were not positive.  

If happens, the merger will be the biggest in Nepalese banking history. The merged entity will be gigantic in terms of Capital base, Reserve, Deposit collection, Customers base and the like. The reduction in company's staff and other operating expenses will maximize the profit, the return and ultimately the shareholders wealth. This will be a win-win situation for everone. 

The bank will however not stop then. The bank will further move ahead to meet the paid-up capital of Rs 20 arba, as the nation has now moved to a new system. The phase of development is now to start and it will defintely need big BFIs to meet the requirments, he finally added.