NSLMB, NBBL merged

HIMALAYAN NEWS SERVICE

KATHMANDU: Nepal Sri Lanka Merchant Banking and Finance Ltd (NSLMB) is finally going to be merged into Nepal Bangladesh Bank Ltd (NBBL) after the central bank’s green signal on January 2. Though, the merger process started in April 2006 when NBBL’s proposed merger with NSLMB was endorsed by the bank’s annual general meeting, the central bank had halted the process as the banks had not duely notified the central bank.

“They were through the merger in October 2010 but the procedure was stalled by NRB as the financial institutions did not apply for the merger to the central bank as per the regulation,” according to the central bank.

Thus, these financial institutions restarted the whole process, jointly applying for the merger. NRB finally granted permission for the merger of these financial institutions on January 2. The merger was formalised after Company Registrar’s Office granted the permission on January 7. From now on, all the transaction of NSLMB will be conducted via NBBL. The central office of NSLMB located at Kamaladi, Kathmandu, will operate as NBBL’s Kamaladi branch office. Likewise, the finance company’s branch office at Banepa will also operate as NBBL’s branch office. Both these companies are owned by NB Group.

NBBL and NB Finance promoted by NB Group had merged four years ago.

After the current merger, NBBL will be able to increase its paid-up capital to Rs 2 billion as required by NRB regulation. However, along with NSLMB’s financial assets, liabilities have also been transferred to the bank. Also, the management has to resolve the issue of employee management.