Section 70
Application To Be Submitted For Merger Or Acquisition
(1) In cases where any bank or financial institution wishes to merge or to be merged into another bank or financial institution, two or more banks or financial institution/s so wishing to merge or be merged shall decide the matter from their respective Board of Directors and submit a joint application to the Rastra Bank for getting approval in principle stating the following matters:-
a. Necessity of and justification for merger of the bank or financial institutions and general projection of the impact it is likely to cause in the banking and financial sector and fiscal system,
b. Latest auditor’s report of the bank or financial institutions wishing to merge or be merged including the audited balance-sheets, profit and loss account, cash flow statement and net worth and so on,
c. Arrangements made for protection of the interests of the creditors of the bank or financial institutions wishing to merge or be merged,
d. Actual report of the movable and immovable assets of the bank or financial institutions wishing to be merged and also period of repayment of liabilities,
e. Details of the management of employees of bank or financial institutions wishing to merge or to be merged,
f. Approval process under the prevailing laws concerning company and securities for the purpose of merger;
g. Preliminary agreement concluded for merger by the institutions;
h. Other details as specified by the Rastra Bank.
(2) In cases where any bank or financial institution wishes to acquire another bank or financial institution, the concerned two or more banks or financial institutions shall decide the matter from their respective Board of Directors and then submit a joint application to the Rastra Bank for getting approval in principle stating the following matters:-
a. Necessity of and justification for the acquisition of the bank/s or financial institution/s and general projection of the impact it is likely to have in the banking and financial sector and fiscal system,
b. Latest auditor’s reports of the principal institution and of the target institution(s) including the audited balance-sheets, profit and loss account, cash flow statement and net worth and so on,
c. Details of the management of the employees of the principal institution and targeted intstiution,
d. Approval process under the laws concerning companies and securities,
e. Preliminary agreement concluded for acquisition of the bank or financial institution,
f. Other details as specified by the Rastra Bank.
(3) The Rastra Bank shall conduct an inquire into the application submitted pursuant to Sub-Section (1) or (2) and in the course of the inquiry, the Rastra Bank may hold discussions with the applicants as and ask for additional documents as may be required.
(4) If the Rastra Bank is satisfied upon inquiry carried out pursuant to Sub-Section (3), that the merger or acquisition would not have any negative impact on the development of banking and financial system of the nation and in fair competition and compliance with the prevailing laws, it may grant approval in principle for further continuation with the process of merger or acquisition and while giving such approval, it may specify additional conditions or issue additional directives.
a. Necessity of and justification for merger of the bank or financial institutions and general projection of the impact it is likely to cause in the banking and financial sector and fiscal system,
b. Latest auditor’s report of the bank or financial institutions wishing to merge or be merged including the audited balance-sheets, profit and loss account, cash flow statement and net worth and so on,
c. Arrangements made for protection of the interests of the creditors of the bank or financial institutions wishing to merge or be merged,
d. Actual report of the movable and immovable assets of the bank or financial institutions wishing to be merged and also period of repayment of liabilities,
e. Details of the management of employees of bank or financial institutions wishing to merge or to be merged,
f. Approval process under the prevailing laws concerning company and securities for the purpose of merger;
g. Preliminary agreement concluded for merger by the institutions;
h. Other details as specified by the Rastra Bank.
(2) In cases where any bank or financial institution wishes to acquire another bank or financial institution, the concerned two or more banks or financial institutions shall decide the matter from their respective Board of Directors and then submit a joint application to the Rastra Bank for getting approval in principle stating the following matters:-
a. Necessity of and justification for the acquisition of the bank/s or financial institution/s and general projection of the impact it is likely to have in the banking and financial sector and fiscal system,
b. Latest auditor’s reports of the principal institution and of the target institution(s) including the audited balance-sheets, profit and loss account, cash flow statement and net worth and so on,
c. Details of the management of the employees of the principal institution and targeted intstiution,
d. Approval process under the laws concerning companies and securities,
e. Preliminary agreement concluded for acquisition of the bank or financial institution,
f. Other details as specified by the Rastra Bank.
(3) The Rastra Bank shall conduct an inquire into the application submitted pursuant to Sub-Section (1) or (2) and in the course of the inquiry, the Rastra Bank may hold discussions with the applicants as and ask for additional documents as may be required.
(4) If the Rastra Bank is satisfied upon inquiry carried out pursuant to Sub-Section (3), that the merger or acquisition would not have any negative impact on the development of banking and financial system of the nation and in fair competition and compliance with the prevailing laws, it may grant approval in principle for further continuation with the process of merger or acquisition and while giving such approval, it may specify additional conditions or issue additional directives.