The trend of commercial banks going to merger, as per the objective of monetary policy is on the rise in recent times.
The ‘big merger’ of commercial banks increased after the monetary policy of the fiscal year 2072/73 stipulated that the paid-up capital of commercial banks should reach eight billion Rs.
Although the deadline has been given till mid-July 2017, the number of mergers has increased lately.
A policy of merger has been adopted to increase the paid-up capital while reducing the number of commercial banks.
Only in the month of January, eight commercial banks have merged with each other and two more commercial banks are in the process of merger.
Banks have been hastily merged with each other as they will be deprived of the facilities provided by the Central Bank if they do not merge by mid January.
Eight commercial banks have merged and started integrated business.
In the month of January, Kumari and NCC, Global IME and Bank of Kathmandu, Prabhu and Century Bank and Nepal Investment and Mega Bank have started integrated business.
After the merger, the paid-up capital of Global IME Bank Limited, which became the largest, has reached 35 billion 77 million rupees.