September 26: Mega Bank has reached an understanding with Gandaki Bikas Bank for the acquisition of the latter. Chairman of Mega Bank Bhoj Bahadur Shah and Chairman of Gandaki Bikas Bank Sushil Gauchan signed an agreement to this effect amid a function on Wednesday, September 25.

With this acquisition, Mega Bank will become one of the largest A-class commercial banks of Nepal with an increased capital, business and branches, said the bank’s chairman Shah. He further informed that the two banks will jointly write a letter to the central bank to allow share transaction of Gandaki Bikas Bank.

After the acquisition, the new entity’s total deposits will increase to 112 billion while the loan provided by the bank will be Rs 98 billion. The bank will have a total of 191 branches after the acquisition.