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Share Transactions of NIBL, Mega Bank on Hold

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Share Transactions of NIBL, Mega Bank on Hold
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June 14: The share transactions of Nepal Investment Bank Limited ((NIBL) and Mega Bank have been halted since June 13. Nepal Stock Exchange has stopped the share transactions of these two banks for their merger.

Nepal Investment Bank and Mega Bank had signed a preliminary agreement for merger on June 10.

NEPSE decided to halt the share transactions of the two banks after they submitted a copy of the preliminary agreement requesting the NEPSE to withhold their share transactions.

Nepal Investment Bank decided to go for a merger with Mega Bank after its failure to merge with Himalayan Bank. NIBL’s share transaction was put on hold since May 14, 2021 due to the merger process with Himalayan Bank. NEPSE had recently allowed share transaction of NIBL on May 30. However, the share transaction has again been halted due to the merger process with Mega Bank.

As per the preliminary agreement regarding merger, the new entity after the merger will be named as Nepal Investment Mega Bank. NIBL will retain the positions of the chairman and CEO after the merger. Other board of directors will be represented by both the banks.

The paid-up capital of NIBL at present is Rs 18.3 billion while that of Mega Bank is Rs 16.12 billion.

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