Nepal | March 31, 2020

Global IME, Janata start integrated transaction

Merged entity becomes country’s largest commercial bank with Rs 24 billion paid-up capital

Himalayan News Service

Kathmandu, December 6

Following the completion of the merger process, Global IME Bank and Janata Bank have begun integrated transactions from today becoming the country’s largest commercial bank.

Global IME Bank and Janata Bank have completed the merger process and the merged entity has started integrated transaction under the name of Global IME Bank. The merger between these two banks also means that the number of commercial banks in the country has come down to 27 at present.

In the last week of September, Nepal Rastra Bank (NRB) had approved the merger plan of these two big commercial banks and had given them three months to complete the process and launch operations as one unit.

Following this merger, the paid-up capital of Global IME Bank has reached Rs 24 billion making it the largest commercial bank of the country. Similarly, Global IME Bank now has more than 300 branches, 295 ATMs and 33 extension counters across the country.

While industrialist Chandra Dhakal is chairman of Global IME Bank, Parshuram Kunwar is its chief executive officer.

Praising the merger of these two banks, Finance Minister Yubaraj Khatiwada said that banks should give priority to public benefits and interests. “Along with becoming the country’s largest bank, Global IME Bank should now keep public interest at its centre and work for the betterment of the entire banking sector,” the finance minister said.

Citing that a bank becoming bigger in size also means enhanced capacity to invest, he urged Global IME to raise its investment in mega projects across different sectors.

Meanwhile, Khatiwada also expressed his dissatisfaction over banks highly prioritising their promoters and the facilities being provided to the chief executive officers of banks. “Banks have been earning quite good and the salaries of CEOs have been increasing overwhelmingly in recent years. However, banks have not been giving due priority to public interest and digital
security issues,” he added.

Meanwhile, NRB Governor Chiranjibi Nepal said that the merger between Global IME Bank and Janata Bank will encourage other commercial banks to opt for mergers. Nepal also said that merged banks, after getting larger in size, should also look at raising capacity of its management team and make ample investment in security issues.

“Different cases have shown that banks need to work on capacity building of its staffs. Amid rising banking threats, banks should invest enough in its human resources and security,” said Nepal.

As per the governor, banks have been primarily focusing on profits which is promoting unhealthy competition among banks. He also asked the board of directors of banks not to put undue pressure on the chief executive officers to increase profits.

A version of this article appears in print on December 07, 2019 of The Himalayan Times.

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