National Finance & Narayani Finance merger complete after two years long process.
2.11.09. Kathmandu, Nepal
Narayani National Finance Ltd. formed after merger of National Finance and Narayani Finance. After a two year long negotiation the merger has been complete in between "National Finance Ltd." based in Newroad, kathmandu with "Narayani Finance" based in Chitwan, Nepal. They have a happy starting with current staffs; feeding them with good salary. Narayani National Finance Ltd. has six board member from three each side. Paid of capital of newely formed finance company has reached Rs. 433.3 million thoroughly Rs. 217.4 million from national Finance and Rs. 215.9 million from Narayani Finance. The company is expected to raise capital soon in future via right issue 1:0.5 to become development bank.
Mr. Umesh Singh Bhandari as chief executive officer of Narayani National Finance Ltd. Ram Krishna Manandhar is currently president of company while Laxmi Das Manandhar, Arunbade Shrestha, Mahendra Lal Pradhan, Suresh Kumar Pudasaini and Om Krishna Shrestha respectively having position in company borad.
What we say??
The fact is our country "Nepal" can not afford too many Financial Institutions (plus 30 commercial banks, similarly development banks and 100 around finance companies beside cooperatives); is another aspect just like too many political parties in our country. Meaningless. The reality is also we are in such situation.
We have too much financial institutions; because of this consequence in financial market unhealthy competitions are running up. The borrowers which come to your company would be good but here in our financial market promoters themselves begging money from outsourcing; having practice to make third nationalities rich. This is very much noticeable as companies are growing and within companies capital is speeding up. This could lead nowhere in our strength of Nepal Financial activities. Because of this also promoters shares; is in need to sell via secondary market otherwise stability doesn't exist though the share price could fall.
Another dream of Nepali Merchant creating another Stock exchange at the moment could be as well very much mocking. To have few companies into pocket make sense for whom?? "Nepal Stock Exchange" is in just rise and need better strength in all aspects. So current exercise through Nepal Rastra Bank should focus in merger and acquisitions. This will increase more value. Why not Venture companies rather than stupidity of having next stock exchange where there are heavy financial institutions only?? Can we think a moment the day of financial institution crisis?? And lost of newely establish stock exchange. Let the market be mature. The crisis of active manpower in the institutions is another big topic already in the market. Can we pay them better profits, do we wish to run in better management form or is just oke who cares !!!! we have good traditions of Sauji and mukhiya.
A better sensation is current need. We are heartfelt and thank full having Narayani Finance Ltd. Similar exercise will encourage more investment into capital market and more value to promoters as well public investors.