Section 73: Provisions on Approval

1) The bank or financial institutions obtaining theoretical approval for initiating merger or acquisition process shall have to adopt special resolutions from their respective General Meetings and shall submit joint application to the Rastra Bank having attached therewith the agreement referred to in Section 72 and other matters prescribed by the Rastra Bank for final approval.

2) While carrying out inquiry into the application submitted pursuant to sub-section (1), the Rastra Bank, if it deems necessary, may ask for additional information or documents to concerned bank or financial institution.

3) While carrying out enquiry pursuant to sub-section(1) and (2), the Rastra Bank may give due consideration to the facts that whether or not the merger of the bank or financial institutions would create healthy competition in the financial sector of the country, whether or not monopoly or controlled practice of any bank or financial institution emerges; whether or not serious negative impact would cause in the financial market and depositors and also having conducted fit and proper test of the promoter/s who may has/have significant ownership in the institution to be created after the merger. After completion of the enquiry, Rastra Bank may grant final approval to the bank or financial institutions for merger or acquisition by prescribing any terms and conditions and or limitations.

4) The Rastra Bank shall, if it has not found to be appropriate to grant approval pursuant to sub-section (3), notify the concerned bank or financial institution along with reasons thereof within forty five days.

5) In case it would be difficult for the institutions obtained approval pursuant to sub-section (3) to comply with the provisions of this Act and directives of Rastra Bank due to merger or acquisition, the Rastra Bank may give privilege as prescribed on the basis of necessity and rationality.

6) Other provisions concerning merger and acquisition shall be as prescribed by the Rastra Bank.