Merger of Siddhartha Development Bank and Nepal Aawas Finance Ltd

Kathmandu, September 23. Nepal's first finance company 'Nepal Aawas Finance Limited' and Siddhartha Development Bank Ltd have signed the agreement to merge on September 22, 2015. Siddhartha Development Bank had already signed agreement with Ekta Development Bank Ltd for merger on 07 September 2015.

Both, Nepal Awas Finance Limited and Siddhartha Development Bank have their central office in Tinkune, Kathmandu. Mr. Ram Bahadur Bhandari convener of merger committee and Director of Siddhartha Bank and Mr. Damodar Sapkota, Director Of Nepal Aawas Finance Ltd. signed the agreement in behalf respective companies.

According to the unaudited financial statements , the combined  paid up capital of Siddhartha Bank and EKta Development Bank is Rs. 84 million 50 lakhs which will increase to Rs.  1 billion 4 million 58 lakhs after the merger with Nepal  Aawas . Currently, Nepal Aawas has paid-up capital of 20 million 8 lakhs. After merger, a total of 32 million 76 lakhs reserve fund will remain with these three organizations. Presently, Siddhartha Bank has reserve of Rs. 25 million and 69 lakhs and Nepal Aawas has reserve of Rs.  7 million 7 lakhs. At present the total no of branches of Siddhartha Bank is 28 and Nepal Awas is 1.

Siddhartha Development Bank has 9 billion 26 million and Nepal Aawas has 54 million deposit right now. After the merger, total deposit will amounts to Rs. 9 billion 80 million and total loan investment will amounst to Rs. 8 billion 17 million. At the present moment, Siddhartha Bank has total of 7 billion 53 million loan investment and Nepal Aawas has 64 million loan investment in the market.  Similarly, operating profit of Siddhartha bank is 20 million 94 lakhs and Nepal Aawas is 1 million 47 lakhs which will total up to 22 million 35 lakhs and bad debt will reach to 2.6%. The total no of employees in Siddhartha Bank is 266 and of Nepal Aawas are 18 which will add up to 284. After the merger, the development bank will have the highest transaction among the development banks operating in Nepal.