The Nepal Weekly 
January 17, 2023
By Raghunath Pradhan
On Poush 27 Mega Bank and Nepal Investment Bank carried their joint operation with the name “Nepal Investment Mega Bank’. Chairman of Nepal Investment Bank Prithvi Bahadur Pandey and Chairman of Mega Bank Bhoj Bahadur Shah jointly announced the joint operation of the banks amid a press conference held at Hotel Aloft in Kathmandu. Former chairman, Prithvi Bahadur Pandey of Nepal Investment Bank is assuming the role of Chairman of Nepal Investment Mega Bank(NIMB). Other board members of NIMB will be Prajanaya Rajbhandari and. Kabi Kumar Tibrewala from NIBL and Gopal Khanal, Madan Kumar Acharya and Mukti Ram Pandey from Mega Bank. Likewise, former CEO, Jyoti Prakash Pandey of Nepal Investment Bank and former independent director Ms. Manju Basnet of NIBL shall continue their position on integrated bank, NIMB as CEO and independent director respectively.
During the program, Pandey expressed his view that upon the merger of two leading banks, the bank will be one of the biggest banks of the country. Further, he also expressed his confidence that the bank will be able to lead on all financial indicators prioritizing on services and facilities to the customers. He also expressed belief that the merger shall encourage the other banks for fulfilling the merger policy of Nepal Rastra Bank.
Similarly, former chairman of Mega Bank, Bhoj Bahadur Shah expressed his views that the merger shall be positive gesture for the economy and banking system of the country as a whole. He is also confirmed that the merged bank shall be able to further high the image of the banks blending the good culture and tradition of the banks and increasing the justifiable return to the shareholders.
Finally both of them expressed their sincere gratitude to Nepal Government, Nepal Rastra Bank, Board of Directors of both banks, Merger Committee, employees of the banks and all well wishers for contributing to make the successful merger of the banks.
Paid up capital of the merged bank has reached Rs 34.12 billion and total assets Rs 471 billion. Likewise, total deposit of the bank has reached Rs 360.20 billion and total loan advance Rs 329.06 billion. Upon the merger, total branch network has reached 296 and ATM network 279 . It has now 59 extension counters and 109 network of branchless banking.
The bank has program to spread its network in all 77 district in near future. According to Panday the bank is serving 10% of entire population of the country.
History of merger of Financial Institutions in Nepal
The history of merger of financial institutions in Nepal starts with the merger between Laxmi Bank and HISEF Finance that took place in 2061 BS. Later on due to liberalization of the economy too many banks came into operation. Total number of commercial banks was 32 in 2070 which created unhealthy competition among them. Later on regulator, Nepal Rastra Bank urged to increase paid up capital of banks and financial institutions and advised them to go on merger for increasing their capital base and to boost up their risk bearing capacity. The regulator placed merger Bylaws 2068 which has been superseded by new Bylaw 2073 and providing with various facilities for encouraging the banks to go on merger.
During the month Poush 2079 four sets of banks merged. Nepal Credit & Commerce Bank with Kumari Bank, Bank of Kathmandu with Global IME Bank, Century Commercial Bank with Prabhu Bank and Mega Bank with Nepal Investment Bank. As a matter of fact the total number of commercial banks has now been reduced to 22 which were 32 in 2070 B.S. One more bank Civil Bank is going to merge with Himalayan Bank in next month and Sunrise bank is also going to merge with Laxmi Bank soon. After the merger of these banks there will be only 20 banks in the country.
