Season of ‘big merger’ of commercial banks

Himalaya Times
Read Time = 1 min

Eight commercial banks have merged with each other in the month of Poush alone while additional  commercial banks are in the merger phase.

Eight banks have merged and already started their joint operation. The banks which merged in the month of Poush include Kumari and NCC Bank, Global IME and Bank of Kathmandu, Prabhu and Century Bank and Nepal Investment and Mega Bank.

Nepal Rastra Bank (NRB) then Governor Dr Chiranjibi Nepal made a provision of the commercial banks to have paid up capital of Rs 8 billion through the monetary policy of the Fiscal Year 2072/73 BS. The timeline given for this was until the end of Asar, 2074 BS.

The goal of increasing the paid up capital was to decrease the number of commercial banks. The policy that was adopted that time has turned into reality at present. Although some commercial banks went for a merger in the meantime, a wave of the latest mergers has reduced the numbers of commercial banks, giving a sense the then goal of big merger.

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