KATHMANDU, Sept 24: Siddhartha Development Bank Ltd (SDBL) and Nepal Aawas Finance Company Ltd (NAFCL) have signed a memorandum of understanding (MoU) for merger.
Issuing a press release , SDBL said it is its second agreement for merger. It has already signed similar MoU with Ekata Bikas Bank Ltd (EBBL).
SDBL pursued merger with the national-level finance company following the Nepal Rastra Bank's decision to raise minimum paid-up capital of bank and financial institutions (BFIs) by as much as four times.
SDBL's merger committee coordinator Ram Bahadur Bhandari and NAFCL Chairman Damodar Sapkota signed the MoU on behalf of their respective companies on Tuesday. The paid-up capital of the merged entity will be Rs 1.46 billion.