NMB Bank receives merger approval
Total capital and reserves to stand at Rs 6.2 billion, with consolidated deposit of Rs 54 billion and loans and advances amounting to Rs 41 billion
Kathmandu, September 30
NMB Bank is creating history in the Nepali financial market with the final approval for its merger from Nepal Rastra Bank.
Marking an unprecedented event in the Nepali banking industry wherein five financial institutions shall commence operation as a single financial institution — Bhrikuti Development Bank, Pathibhara Development Bank, Clean Energy Development Bank and Prudential Finance shall merge to commence operation under the flagship name of ‘NMB Bank’ from October 18.
This move will establish the bank’s position as one of the leading commercial banks in the country, with a bigger capital base to serve its customers better in every aspect, as per a press statement issued today.
The approval, which confirms the merger process initiated in the fiscal 2071-72, strategically incorporates regional representation of the two biggest regional level development banks strengthening the bank’s retail base as well as increasing its footprint at a pan-Nepal level.
An important aspect of this merger is the bank’s alliance with international partners, FMO (Financierings Maatschappij-voor Ontwikkelingslanden) of the Netherlands and Young Lian. FMO-the International Development Bank of the government of the Netherlands with investment portfolio strength of 3.4 billion euros is one of the largest bilateral development banks worldwide.
FMO’s alliance boosts the bank’s exposure specifically in energy sector investment and international trade which directly boosts its strength in the equity capital market, the statement adds.
The merger approval positions NMB Bank as a forerunner to address the current Nepal Rastra Bank requirement of increasing the capital base to Rs eight billion in the next two years.
Post merger, the bank’s total capital and reserves will stand at Rs 6.2 billion, with consolidated deposit of Rs 54 billion and loans and advances of Rs 41 billion, establishing it as one of the largest banks in the country.
The bank’s footprints will increase to 68 branches, eight extension counters and 38 ATM counters across the country.