KATHMANDU, March 3: Nepal Rastra Bank (NRB) has paved the way for Nabil Bank to officially acquire Nepal Bangladesh Bank (NBB) by principally agreeing on the unification of the two financial institutions.
NRB in this regard has asked the two banks to complete their unification process within the next six months. Earlier on January 13, Nabil Bank and NBB signed an agreement for the acquisition.
Revised interest rate corridor system introduced
In July 2021, NBB announced the exit of IFIC Bank that owned 40.09 percent shares of the bank from the joint-venture bank in order to join hands with Nabil Bank. The Binod Chaudhary-led Chaudhary Group then made its way to purchase 36,827,426 unit shares of the foreign partner of the NBB.
Following the acquisition, it has been agreed that all of NBB’s business transactions will be in the name of Nabil Bank and the Bank’s current board members will remain as the board of directors. The swap ratio has been agreed to be fixed at 100 units shares of NBB equivalent to 43 units shares of Nabil Bank.
