Kasthamandap Development Bank to acquire Mahakali Bikas Bank

June 3: An agreement has been finalized between Kasthamandap Development Bank and Mahakali Development Bank regarding acquisition of Mahakali Bank by Kasthamandap Bank. In the agreement, Jagannath Gyawali, board of director (BOD) Chairman of Kasthamandap Bank and Surendar Kumar Joshi, Chiarman of Mahakali Bank signed the agreement on behalf of their respective organization.  In a press release issued by the banks, the agreement has already been approved by BOD of both banks.

According to Kasthamandap Development Bank, it is acquiring Mahakali Bikas Bank in order to increase the paid up capital as directed by Nepal Rastra Bank (NRB). The share swap ratio agreed between the two banks is 1:1. The bank informs that the paid up capital of bank will reach to Rs 800 million after merger. Currently, the paid up capital of Kasthamandap is Rs 679.8 million and that of Mahakali is Rs 127.2 million. The number of branches of the bank will reach 26 after merger.