January 10: Laxmi Bank has reached a preliminary understanding with Sunrise Bank for a merger.

Raman Nepal, chairman of Laxmi Bank and Motilal Dugar, chairman of Sunrise Bank, signed the preliminary agreement regarding the merger of the two banks on Monday.

Members of the board of directors, shareholders, chief executive officers and other high-ranking officials of both the banks were present during the signing ceremony. The two banks have also formed a joint merger committee to take the merger process forward.

The joint merger committee comprises of directors Dr Manish Thapa and Swati Rungata on behalf of Laxmi Bank and directors Sharda Sharma and Deepak Nepal on behalf of Sunrise Bank.

As per the information shared by the banks, auditors will also be appointed for a detailed 'due diligence audit' of both the banks. The merger process will formally start after receiving the in-principle approval from Nepal Rastra Bank for the merger and will be completed within the current fiscal year.