Manjushree Finance’s swap ratio for merger with Lumbini Bank between 65 - 75 %

A month after signing a MoU to merge with Lumbini Bank Limited for the merger, Manjushree Finance Institution Limited is looking at a good deal with commercial bank.

 According to the officials of both the BFIs, they are close to finalizing a deal with a swap ratio of 65 to 75 percent for the finance company.

“Manjushree is asking for more than 70 percent, while Lumbini is not willing to give more than 65,” a source privy of the development told .
Officials from both the institutions also informed that the DDA for the merger is in the final stage and that they would formally announce the merger shortly.

With the merger process, the shareholders from both the sides are upbeat about good returns from the current fiscal year.

The 16th Annual General Meeting of Lumbini Bank Limited held earlier in January had formally endorsed 8 percent bonus shares and 0.46 percent cash dividend to the shareholders from the net profit the commercial bank posted in the last fiscal year 2069/70.

The bank's paid-up capital has also soared to Rs 1.72 arba.

The commercial bank had posted a net profit of Rs 14.95 crore in the last fiscal year.

Notably, the bank had reported a nominal rise in net profit of 1.2 percent in the first quarter of the current fiscal year 2070/71 as it earned a net profit of Rs 2.48 crore, down from Rs 2.45 crore in the corresponding quarter of the last fiscal year.

Lumbini’s non performing loan has, however, marginally risen from 1.17 percent to 1.67 percent in the first quarter.

Its net worth per share stands at Rs 137.85 and its EPS (annualized) at Rs 6.20.

Manjushree had posted a net profit of Rs 2.73 crore in the last fiscal.-SSN