Pokhara Samriddhi Finance Merger Update Nepal
3rd March 2026, Kathmandu
The landscape of the non banking financial sector in the Federal Democratic Republic of Nepal is set for a major transformation as the Pokhara Samriddhi Finance Merger enters its final implementation phase. According to the latest institutional updates, Pokhara Finance Limited and Samriddhi Finance Company Limited have reached a comprehensive agreement to begin integrated operations by the end of March 2026 (Chaitra 2082). This strategic move follows a period of intense negotiations and the completion of a detailed due diligence audit (DDA) that paved the way for a 1:1 share swap ratio. In the year 2082, as the Nepal Rastra Bank continues to encourage mergers and acquisitions to strengthen the capital base of financial institutions, this unification represents one of the most significant consolidations in the finance company category, creating a unified entity that will continue to operate under the name Pokhara Finance Limited.
Pokhara Samriddhi Finance Merger
The core of the Pokhara Samriddhi Finance Merger is the equal footing agreement, where shareholders of both institutions will see their equity exchanged at a par value. The DDA report, which is a critical component of any merger in the Nepali banking sector, revealed a valuation variance of only 7 percent between the two companies. Since this variance falls well within the 10 percent threshold typically accepted by the central bank, the path toward a 1:1 swap was cleared without the need for complex adjustments to the book value. This alignment reflects a mutual respect for the asset quality and market position of both partners. Following the merger, the registered office of the company will remain in the scenic city of Pokhara, maintaining its regional roots, while the corporate headquarters will be strategically located in the capital city of Kathmandu to oversee national operations.
The leadership and governance structure of the new Pokhara Finance has been meticulously planned to ensure stability during the transition. The post merger Board of Directors will consist of seven members, with a majority of four directors coming from Samriddhi Finance and three representing the original Pokhara Finance. Ajay Mishra, the current chairman of Samriddhi Finance, has been designated to lead the unified board as Chairman. Joining him from the Samriddhi side are Durga Thapa, Dinesh Kumar Bartaula, and Sudip Ghimire. The Pokhara Finance representatives on the board will include Pratik Gurung, Yam Bahadur Surkhal, and Til Bahadur Gurung. Notably, several high profile figures including Rajkumar Gurung, Ganga Ghale, Vinod Kumar Subedi, and Roshan Pant will exit the board to make room for this new streamlined governance body.
In terms of executive leadership, the Pokhara Samriddhi Finance Merger agreement has confirmed Prakash Gurung as the Chief Executive Officer (CEO) of the consolidated institution. This appointment provides a clear line of command as the two workforces begin to integrate their systems and cultures. While the role of the current Samriddhi Finance CEO, Santosh Kumar Ghimire, is still being finalized, internal discussions suggest a potential transition into a Deputy CEO position to ensure that the expertise from both sides is retained. This clarity in senior management is essential for maintaining employee morale and ensuring that customer service remains uninterrupted during the end of Chaitra integration.
From a financial perspective, the merger significantly boosts the capital strength of the combined entity. The total paid up capital will reach approximately 1.90 billion rupees, providing a robust cushion against potential losses and expanding the company’s lending ceiling. Prior to the merger, Pokhara Finance held a capital of 1.08 billion rupees while Samriddhi Finance stood at 818.9 million rupees. This consolidated capital base not only meets the regulatory requirements of the Nepal Rastra Bank but also positions the company to take on larger infrastructure and commercial loans that were previously beyond the reach of the individual institutions. In the year 2082, capital adequacy is a key indicator of a financial institution’s resilience, and the new Pokhara Finance will enter the market with a much stronger balance sheet.
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The deposit and loan portfolio of the merged entity also shows impressive scale. Based on the second quarter data of the current fiscal year, the unified Pokhara Finance will manage a total deposit base of 10.37 billion rupees and a loan portfolio of 6.30 billion rupees. This massive pool of resources allows the company to benefit from economies of scale, reducing the cost of funds and improving overall profitability. However, the merger also brings together two very different credit profiles. A major challenge for the management will be addressing the non performing loan (NPL) ratio, which stands at 25.10 percent for Pokhara Finance and 8.17 percent for Samriddhi Finance. Bringing the combined NPL down to a healthier single digit level will require aggressive recovery efforts and a more stringent credit appraisal process in the post merger era.
The physical reach of the company will expand significantly, with a total of 36 branches operating across Nepal. This network makes the new Pokhara Finance one of the largest finance companies in the country by branch count. In regions like the Pokhara Valley where both institutions currently have overlapping branches, the management plans to conduct a rationalization exercise to improve operational efficiency. This might involve merging nearby branches into larger, more modern service centers. Importantly, the merger will protect the livelihoods of approximately 300 employees, with the management assuring that there will be no reduction in staff designations or service benefits. This commitment to the workforce is vital for ensuring a smooth cultural integration between the 200 staff from Pokhara and the 100 from Samriddhi.
The strategic significance of the Pokhara Samriddhi Finance Merger extends beyond the individual companies. It signals a new era of consolidation in the finance sector, where smaller players are joining forces to compete with larger development banks. By improving its geographic outreach and digital capabilities, the new Pokhara Finance aims to provide more sophisticated products to its customers, from SME loans and agricultural financing to modern mobile banking solutions. In the year 2082, as the Nepali economy undergoes structural changes, a larger and more stable finance company can play a crucial role in supporting local entrepreneurs and fostering financial literacy in rural and semi urban areas.
In conclusion, the Pokhara Samriddhi Finance Merger is a landmark event in the 2082 corporate calendar of Nepal. While the immediate focus remains on securing the final approval from the Nepal Rastra Bank and managing the high non performing loan ratio, the long term outlook for the unified entity is positive. Under the leadership of Chairman Ajay Mishra and CEO Prakash Gurung, the new Pokhara Finance has the potential to become a dominant force in the national finance company segment. Shareholders, employees, and customers can look forward to a more resilient and capable institution that is better equipped to navigate the challenges of the modern financial world. As the integrated operations commence at the end of Chaitra, the success of this merger will serve as a powerful case study for further consolidations in the Federal Democratic Republic of Nepal’s financial landscape.
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