December 16: Shareholders of Ace Development Bank have accused the bank's promoters of forwarding the merger process with Nepal Investment Bank (NIBL) in low swap ratio due to the old private and business relation with the Chairman of NIBL, Prithwi Bahadur Pandey.  According to them, the promoters of Ace being the promoters of NIBL as well are acting for their own benefits only overlooking the general investors' interest.  

The general investors are anxious that the NIBL Chairman Pandey might obtain the merger approval against the law from NRB by creating political pressure through his in-laws who is also a former finance minister and by influencing the related department of NRB.

The promoter and general shareholders' proportion in Ace Development Bank is of 51:49. In the general meeting of Ace, investors had voiced against the 41 per cent valuation of the bank for the merger with NIBL which will provide annulled monetary gain to the promoters and tumble the general shareholders.

Previously, when the merger of Sunrise Bank and Narayani National Development Bank was undertaken, Narayani was valued 78 per cent. Similarly, when ILFC Finance merged with Civil Bank, ILFC was valued 80 per cent. Likewise, Clean Energy Development Bank was valued 75 per cent while merging with NMB Bank, Kasthamandap Development Bank was valued 80 per cent while merging with Kumari Bank and Tribeni Development Bank was valued 100 per cent while merging with Janata Bank.

Keeping the objections from general investors apart, when the annual general meeting of Ace decided about the merger, the investors went to Commission for the Investigation of Abuse of Authority (CIAA). In the AGM, Chairman of Ace, Yogendra Shakya was absent citing ill health. The general investors have submitted complaints against the decision to NRB and CIAA. After receiving the complain from general investors, CIAA wrote to NRB on November 25. General investors doubt that the NRB might approved the 41 per cent swap ratio besides the CIAA intervention in the influence of NIBl Chairman.