Pokhara and Samriddhi Finance to Merge Under Pokhara Brand; Post-Merger Capital at NPR 1.9B
Struggling Pokhara Finance and Samriddhi Finance agree to merge at a 1:1 swap ratio. Post-merger capital to reach NPR 1.9B, but retained earnings remain negative.
In a strategic move to stabilize their deteriorating financials, Pokhara Finance Ltd. and Samriddhi Finance Ltd. have signed a merger agreement at a 1:1 share swap ratio, signaling one of the most significant consolidation steps in Nepal’s finance sector in recent months.
The merged entity will retain the name Pokhara Finance Ltd., though its central office will relocate to Kathmandu. The new board structure will comprise seven members — four from Samriddhi, including the Chairperson, and three from Pokhara Finance.
The memorandum of understanding was jointly signed by Sudip Ghimire (Samriddhi) and Til Bahadur Gurung (Pokhara) in the presence of senior executives from both institutions.
Post-merger financials:
Paid-up capital will rise to NPR 1.901 billion
Retained earnings will remain negative at NPR 934.5 million
Deposits will stand at NPR 9.49 billion
Loans and advances will reach NPR 7.47 billion
However, key metrics suggest financial stress:
Pokhara’s NPL (Non-Performing Loan) ratio is high at 31.25%, while Samriddhi’s stands at 16.42%
EPS (Earnings Per Share) is negative NPR 5.81 for Samriddhi, and positive NPR 8.85 for Pokhara (Q3, FY 2081/82)
Net worth per share stands at NPR 53.63 for Samriddhi and NPR 48.75 for Pokhara
Both entities were facing regulatory and operational pressure. With Nepal Rastra Bank’s push for consolidation, the merger is viewed as a regulatory-aligned restructuring to safeguard depositors, protect shareholder value, and enhance institutional stability.
While challenges remain — especially in cleaning up toxic assets and restoring profitability — the combined entity is expected to become financially stronger with unified governance and streamlined operations.