Vibor Society and Lumbini Finance to Merge

February 7: Vibor Society Development Bank and Lumbini Finance and Leasing Company are set to merge with each other. The 'B' and 'C' listed financial institutions are merging in order to meet the paid-up capital requirement as per NRB directive.

The two financial institutions signed a memorandum of understanding regarding the merger amid a program on February 7. Sushil Raj parajuli, Chairman of Vibor Society and Chitamani Bhattarai, Chairman of Lumbini signed the agreement paper on behalf of their respective organisation.

Jhalak Prasad Khanal, CEO of Vibor informed that the merged entity will have paid-up capital of Rs 2.37 billion, deposit of Rs 17 billion, loan extension of Rs 15 billion and 49 branches. According to him, the merged entity will be named 'Lumbini Bikash Bank Ltd' and will be chaired by Parajuli, current Chairman of Vibor.  Similarly, Khanal, the current CEO of Vibor will serve as the CEO of the merged bank. Likewise, Umesh Regmi, CEO of Lumbini Finance will be serving the merged entity as deputy CEO (DCEO).

The swap ratio of the merging financial institutions will be decided after concluding due diligence audit (DDA) as per the Bank and Financial Institutions Merger and Acquisition Regulation, 2073 issued by NRB, he added.