First Microfinance and Mahila Laghubitta Sign Memorandum of Understanding to Merge
11th August 2026, Kathmandu
First Microfinance Laghubitta Bittiya Sanstha Limited and Mahila Laghubitta Bittiya Sanstha Limited have officially entered into a preliminary merger agreement.
First Microfinance Signs MoU
The bilateral memorandum of understanding was formally signed at 5 PM on August 10, 2026, marking the start of the amalgamation process between the two microfinance institutions.
The primary objective of the proposed consolidation is to create a stronger, capital rich financial entity capable of expanding microfinance outreach, enhancing institutional capacity, and delivering improved financial services across Nepal.
Corporate Profiles and Central Office Locations
The two merging entities hold established positions within the national microfinance landscape:
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- First Microfinance Laghubitta Bittiya Sanstha Limited operates its corporate central office in Gyaneshwor, located within Kathmandu Metropolitan City Ward Number 30.
- Mahila Laghubitta Bittiya Sanstha Limited maintains its head office in Sanga, situated within Banepa Municipality Ward Number 13, Kavrepalanchok District.
- The geographic footprint and central operations of both companies provide a solid operational base for the unified post merger structure.
Next Steps in the Amalgamation Process
Following the signing of the preliminary memorandum of understanding, both institutions will initiate formal corporate and regulatory procedures required for merger completion.
The consolidation pathway includes several key operational and regulatory milestones:
- First, both institutions will request trading halts on stock exchanges for share transactions in accordance with regulatory requirements governing mergers.
- Second, a joint merger management committee will be formed to oversee due diligence audits and determine the swap ratio for share exchange.
- Third, formal approvals will be sought from regulatory bodies, including Nepal Rastra Bank and the Securities Board of Nepal.
- Finally, special general meetings will be convened by both microfinance providers to obtain final shareholder endorsement for the merger plan.
Industry Context and Sector Consolidation
The merger between First Microfinance and Mahila Laghubitta aligns with broader financial sector reforms encouraged by Nepal Rastra Bank.
By merging capital bases, risk management systems, and branch networks, the unified microfinance institution aims to improve operational efficiency, lower funding costs, and build greater financial stability in the microfinance market.
For More: First Microfinance Signs MoU
