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[Capital of the merged investment bank will increase maximum]

Nepal Investment Bank will receive Citi Express Finance at the rate of Rs 30 per unit.  A meeting of the Joint Acquisition Committee of the Bank and Finance held on September 3 has finalized the share exchange ratio.
Trading in the shares of Finance has been halted after an agreement was reached on December 11.
Some time ago, a new group was buying and improving the City Express, which was freed from the troubled organization. The government has introduced a corporate tax exemption scheme for mergers. The bank is also going to buy finance to take advantage of the scheme. Besides, Finance is opening about a dozen branches in Kathmandu.
After the merger, the bank will also benefit from the branch network. However, the bad debts of finance are a bit higher. The bank has stated that there is no problem in raising bad loans as there is collateral.
Finance has a paid up capital of Rs 400 million. The bank has Rs 14.24 billion. The bank’s paid-up capital will increase by Rs 120 million as it has received Rs 30. The remaining Rs. 280 million will go to the reserve fund. Even if you do not want to distribute cash from the reserve fund, you can distribute bonus shares.
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