Merger/Acquisition By Commercial Banks In Nepal

June 23, 2020 | Investopaper

After the successful merger between Global IME Bank and Janata Bank, there are currently 27 commercial banks in Nepal. Introducing Merger Bylaw 2068 (2011), Nepal Rastra Bank (NRB) encouraged all the Banks and Financial Institutions (BFIs) for the merger. Following NRB guidelines, several commercial banks in Nepal have undergone merger and acquisition. However, the banks have found difficulty in merging or acquiring each other.

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Until now, only six such big merger have occurred in the banking system of Nepal.

1. NIC Bank Ltd + Bank of Asia Ltd = NIC Asia Bank Ltd.

2. Prabhu Bank Ltd+ Grand Bank Ltd = Prabhu Bank Ltd.

3. Global IME Bank Ltd + Commerz & Trust Bank Ltd= Global IME Bank Ltd.

4. Prabhu Bank Ltd  + Kist Bank Ltd = Prabhu Bank Ltd.

5. Bank Of Kathmandu Ltd + Lumbini Bank Ltd = Bank Of Kathmandu Ltd.

6. Global IME Bank Ltd + Janata Bank Ltd = Global IME Bank Ltd.

However, commercial banks have aggressively merged/acquired several development banks and finance companies.

Related: Merger/Acquisition Of Microfinance Companies In Nepal

Merger/Acquisition By Commercial Banks In Nepal

So far, 20 Commercial Banks in Nepal have gone into merger or acquisition with other BFIs. The table below shows the list of BFIs Involved in Merger and Acquisition with the commercial banks.

S.N. Commercial Banks BFIs  Involved In Merger & Acquisition
1 Global IME Bank Ltd. Global Bank Ltd.
IME Finance Ltd.
Lord Buddha Finance Ltd.
Social Development Bank Ltd.
Gulmi Bikas Bank Ltd.
Commerz & Trust Bank Ltd.
Pacific Development Bank Ltd.
Reliable Development Bank Ltd.
Hathway Finance Ltd
Janata Bank Ltd
2 NCC Bank Ltd. NCC Bank Ltd.
Infrastructure Development Bank Ltd.
Apex Development Bank Ltd.
Supreme Development Bank Ltd.
International Development Bank Ltd.
3 Prabhu Bank Prabhu Finance Ltd.
Samabridhi Bikash Bank Ltd.
Baibhav Finance Ltd.
Kist Bank Ltd.
Gaurishankar Development Bank Ltd.
Zenith Finance Ltd.
Grand Bank Nepal Ltd.
4 Civil Bank Ltd. Civil Bank Ltd.
Axis Development Bank Ltd.
Civil Merchant Bittiya Sanstha Ltd.
International Leasing & Finance Co. Ltd.
Unique Finance Ltd.
Hama Merchant & Finance Ltd.
5 NMB Bank Ltd. NMB Bank Ltd.
Pathivara Bikas Bank Ltd.
Bhrikuti Bikas Bank Ltd.
Clean Energy Dvelopment Bank Ltd.
Prudential Finance Ltd.
Om Development Bank Ltd
6 Century Commercial Bank Ltd. Century Commercial Bank Ltd.
Innovative Development Bank Ltd.
Araniko Development Bank Ltd.
Sagarmatha Finance Ltd.
Seti Finance Ltd
Alpine Development Bank Ltd
7 Kumari Bank Kumari Bank Ltd.
Kastamandap Development Bank Ltd.
Mahakali Bikash Bank Ltd.
Kakrebihar Bikash Bank Ltd.
Paschimanchal Finance Ltd.
Deva Bikas Bank Ltd.
8 Citizens’ Bank International Ltd. Citizens’ Bank International Ltd.
Nepal Housing & Merchant Finance Ltd.
People’s Finance Ltd.
Premier Finance Ltd.
9 Laxmi Bank Ltd. Laxmi Bank Ltd.
Hisef Finance Ltd.
Professional Diyalo Bikash Bank ltd.
10 Sunrise Bank Ltd. Sunrise Bank Ltd.
Narayani National Finance Ltd.
NIDC Capital Markets Ltd.
11 Prime Commercial Bank Ltd. Prime Commercial Bank Ltd.
Biratlaxmi Bikash Bank Ltd.
Country Development Bank Ltd.
Kankai Bikas Bank Ltd
Kailash Bikas Bank Ltd
12 Nepal Bangladesh Bank Ltd. Nepal Bangladesh Bank Ltd.
NB Finance Ltd.
Nepal Srilanka Merchant Finance Ltd.
13 Siddartha Bank Siddartha Bank Ltd.
Business Universal Development Bank Ltd.
14 Bank of Kathmandu Ltd. Bank of Kathmandu Ltd.
Lumbini Bank Ltd.
15 Machhapuchhre Bank Ltd. Machhapuchhre Bank Ltd.
Standard Finance Ltd.
16 NIC Asia Bank Ltd. NIC Bank Ltd.
Bank of Asia Nepal Ltd.
17 Mega Bank Nepal Ltd. Mega Bank Nepal Ltd.
Paschimanchal Development Bank Ltd.
Tourism Development Bank Ltd
Gandaki Bikas Bank Ltd.
18 Sanima Bank Ltd. Sanima Bank Ltd.
Bagmati Development Bank Ltd.
19 Nepal Investment Bank Ltd. Nepal Investment Bank Ltd.
Ace Development Bank Ltd.
Jebil’s Finance Ltd
20 Rastriya Banijya Bank Ltd. Rastriya Banijya Bank Ltd.
NIDC Development Bank Ltd.

Note: Before the merger with Global IME Bank, Janata Bank had merged with other BFIs which include Triveni Development Bank Ltd.  and Siddhartha Development Bank Ltd.

Also Read: Net Profit of Commercial Banks in Nepal

Commercial Banks Currently In Merger/Acquisition Process

Following are the list of commercial banks which are currently in the process of acquiring other BFIs.

1. Citizens Banks International Ltd. + Sahayogi Bikas Bank ltd. [Acquisition]

2. NMB Bank Ltd. + Kanchan Development Bank Ltd. [Acquisition]

3. Nepal Investment Bank Ltd.+ City Express Finance [Acquisition]

Related: Technical Issues in Bank Merger

Commercial Banks Never In Merger/Acquisition

Although several commercial banks have opted to merger or acquire other BFIs, there are seven banks which have never undergone any merger or acquisition. They are:

1. Agriculture Development Bank Ltd

2. Everest Bank Ltd

3. Himalayan Bank Ltd

4. Nabil Bank Ltd

5. Nepal Bank Ltd

6. Nepal SBI Bank Ltd

7. Standard Chartered Bank

Read Related Contents: 

List of ‘A’ Class Commercial Banks In Nepal 

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One thought on “Merger/Acquisition By Commercial Banks In Nepal

  • August 27, 2020 at 7:49 am
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    Hello!
    Can we download the information published in this site for further use? I would be better to have such access. Thank you

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