Kathmandu. Muktinath Bikas Bank, which is going to be upgraded to a commercial bank, is preparing to go for merger and acquisition. The bank has called its Annual General Meeting (AGM) on November 30.

The meeting will propose identifying suitable banks and financial institutions for the purpose of acquiring and merging with other appropriate banks and financial institutions.

The meeting will take a proposal to sign the agreement for merger and acquisition, apply to Nepal Rastra Bank for approval in principle, appoint consultant, valuer and auditor to evaluate the property liability and fix their remuneration and authorize the Board of Directors to carry out other necessary works related to the merger. After the meeting approves the proposal, the board of directors will be delegated authority to carry out the necessary process.

The bank has proposed 13.53 percent bonus shares from the profit of the last FY. The shareholders will get the proposal after the approval of the proposal of Nepal Rastra Bank on November 30. After the capital increase as approved by the AGM, the proposal to upgrade the development bank into a commercial bank as per the provisions prescribed by the Rastra Bank will be taken to the meeting.

The meeting has proposed to give authority to the Board of Directors or a person designated by the committee to amend the Memorandum of Association and Articles of Association of the Development Bank if directed to make changes from the regulatory body.