Kathmandu – Facing mounting financial pressure, Pokhara Finance Limited has officially entered into a merger agreement with Samriddhi Finance Limited. The two companies agreed to merge on a 1:1 swap ratio, meaning shareholders of both institutions will receive one share in the new entity for each share they currently hold.
The merged institution will retain the name Pokhara Finance Limited, but its central office will be relocated to Kathmandu. As part of the merger terms, the new Board of Directors will be led by a chairperson from Samriddhi Finance. The board will comprise four members from Samriddhi and three from Pokhara Finance.
The Memorandum of Understanding (MoU) for the merger was jointly signed by Sudip Ghimire, coordinator of the merger committee from Samriddhi Finance, and Til Bahadur Gurung, coordinator from Pokhara Finance. The signing ceremony was attended by officials and staff members from both companies.
The institutions stated that the merger is expected to create a stronger and more capable financial entity, improving operational efficiency and ensuring greater financial resilience. Both companies emphasized that the deal aims to safeguard the interests of promoters and public shareholders alike while contributing to the broader stability of Nepal’s financial sector.
The move aligns with the policy direction set by Nepal Rastra Bank (NRB), which has been actively encouraging consolidation among financial institutions to strengthen the sector.
Pokhara Finance had been under significant financial stress, prompting it to proactively pursue a merger as a solution. Samriddhi Finance, too, has reportedly faced weakening financial indicators in recent times, including challenges related to capital adequacy, declining profits, and a rise in non-performing loans (NPLs).
Analysts see the merger as a strategic response to growing regulatory and market pressures and a positive step toward creating a more stable and competitive financial institution.