Nepal | May 26, 2019

RBB-NIDC merger deadline likely to be missed

Himalayan News Service

Kathmandu, December 25

The set deadline to complete the merger process of government-owned Rastriya Banijya Bank (RBB) and NIDC Development Bank is likely to be missed due to delay in preparatory works.

The joint merger committee led by Joint Secretary at the Ministry of Finance (MoF) Nirmalhari Adhikari had set a deadline to complete the process within mid-January. However, the preparatory works are yet to be finalised.

While signing the memorandum of understanding (MoU) here on August 28, both the banks had committed to finalise the merger process within the set deadline. “Both banks have appointed consultants to finalise their financial and accounting reports. After getting the report, only the issue related to adjustment of staffers will remain,” Baikuntha Aryal, joint secretary at MoF and chairman of NIDC, stated.

Moreover, according to Mukunda Panthi, a member of joint merger committee, consultants are expected to submit their final reports within next few days and the special general meeting of both banks will be called very soon.

“We are trying to complete the process within the set deadline, but it is difficult to complete the process within mid-January,” Panthi said.

Staffers, who are working in the NIDC, will be adjusted with the staffers of RBB. As per the bank, currently 38 permanent staffers are working in NIDC and half of them
are seeking the golden handshake.

“This will not be a big issue as half of the permanent staffers are seeking the golden handshake. However, the guideline for the scheme has not been prepared yet,” a board member of NIDC informed.

The source also informed that the staffers who are working on contract basis will get the opportunity to work in the new bank till their contract period ends.

A Cabinet meeting, held on January 27, had also urged both the institutions to expedite the merger process. A committee that had been formed in coordination of former secretary Prithvi Raj Ligal had also suggested the NIDC to merge with RBB or to establish itself as an investment bank in collaboration with Hydropower Investment and Development Company Ltd.


A version of this article appears in print on December 26, 2017 of The Himalayan Times.


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