Global IME Bank: #1 Bank after successful Merger with Janata Bank

December 18, 2019 | Investopaper

After the successful merger with Janata Bank, Global IME Bank has emerged as the top commercial bank of Nepal. In the last 7 years, Global IME Bank has undergone merger/ acquisition with 10 different financial institutions. Due to an effective merger policy, the bank with its strong and robust financial condition ranks #1 in several indicators.

Where Global IME Bank Stands?

Based on the un-audited quarterly report of Ashwin 30, 2076, the combined financial statements of Global and Janata Bank indicate that the bank after merger leads in several financial indicators.

Paid-up Capital

With a new paid-up capital of Rs. 17.24 billion after merger, Global IME Bank is the number one commercial bank of Nepal with the highest paid-up capital. Its nearest competitor, Nepal Investment is far behind with Rs. 12.87 billion.

As of the first quarter, Global IME Bank has a capital of Rs. 10.44 billion. Likewise, Janata Bank’s capital stands at Rs. 8 billion. With the swap ratio of 100:85, the capital of the merged entity will rise to Rs. 17.24 billion.

With the combined total reserve of Rs. 10.71 billion, the bank possesses an enormous shareholder’s equity of Rs. 27.91 billion.

Deposits

Global IME Bank after merger with Janata Bank, will occupy the #1 spot with the highest deposit collection of Rs. 204.03 billion. It surpasses its nearest rival Rastriya Banijya Bank by almost Rs. 17 billion. Before the merger, Global IME Bank & Janata Bank collected deposits of Rs. 128.99 billion and Rs. 75.04 billion respectively until the Ashwin end, 2076.

Loans

Lending is the primary business of the banking sector. Higher lending will lead to greater profitability if the quality of the loans is good. Global IME Bank has floated the loans of Rs. 187.09 billion which makes it the largest bank in terms of lending. The total loans of Global Ime Bank exceed NIC Asia by almost Rs. 33 billion.

The total lending includes Rs. 118.49 billion of Global IME Bank and Rs. 68.60 billion of Janata Bank before merger.

Profit

After the merger with Janata Bank Ltd., the net profit of the bank will amount to around 1.12 billion. This will establish Global IME Bank as one of the most profitable banks of the country. The company will definitely hit big numbers in the coming days through synergy after the merger with Janata Bank.

Table 1: Financial Condition of Global IME Bank after Merger

Note: Based on the first quarter of FY 2075/76

Network

Before the merger, Global IME Bank operated through 151 branches across the country. In addition, Janata Bank has 143 branches throughout the country. After the merger with Janata Bank, the bank will penetrate in more areas and make it products and services more accessible to the customers through its huge network of branches.

History of Mergers and Acquisitions by Global IME Bank

Global IME Bank (GBIME) is the result of the merger/acquisition of 10 banking and financial institutions. In a way, it is a conglomerate in the banking sector of Nepal. As a relatively new bank, Global Bank opened to an idea of merger/ acquisition with other financial institutions. This idea propelled the bank into the new heights making it stronger and financially stable. In an era where banks were too conservative to think beyond themselves, Global Ime Bank took a one step further and initiated the merger revolution in the Nepalese Banking industry.

The mergers and acquisitions successfully implemented by Global IME Bank is shown in the Table 2.

Table 2: Mergers and Acquisition By Global IME Bank

Read Related Contents: 

Financial Analysis of Global IME Bank

Price History of Global IME Bank (GBIME)

Global IME Bank First Quarter report FY 2076/77

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