Laxmi Bank and Sunrise Bank signs definitive merger agreement
Two prominent commercial banks, Laxmi Bank and Sunrise Bank , have successfully concluded the final merger agreement in a ceremonious event held on Monday. The signing of the agreement took place in the presence of distinguished representatives from both financial institutions. Mr. Dinesh Poudyal, Director of Laxmi Bank, and Mr. Er Bachh Raj Tater, Director of Sunrise Bank, affixed their signatures to the agreement, symbolizing the commitment of their respective banks.
In accordance with the recommendations put forth by the Due Diligence Auditor, the two banks have reached a consensus to merge at a swap ratio of 1:1. Following meticulous deliberation, the name “Laxmi Sunrise Bank Limited” has been unanimously chosen as the designated title for the newly formed entity resulting from this merger.
It has been learned that Mr. Ajaya Bikram Shah, the current CEO of Laxmi Bank, will assume the role of CEO in the merged institution. However, the appointment of the Chairman of the Board will be decided during the inaugural meeting of the Board of Directors (BOD) of the combined entity.
The final agreement will now undergo endorsement and seek approval from the respective general meetings of both banks. It is important to note that the successful completion of the merger is contingent upon the regulatory approval of Nepal Rastra Bank (NRB) and the Company Registrar’s Office.
The banks anticipate commencing joint operations and providing integrated services by the end of Ashadh in 2080, pending the necessary approvals and regulatory processes.
Previously, on Poush 25, 2079, LBL and SRBL had signed a Memorandum of Understanding (MOU) to initiate the merger process, marking a significant milestone in their journey towards consolidation.
As a result of this merger and subsequent collaboration, the total number of commercial banks operating in Nepal will be reduced to 20.