The bank has hailed the development as 'an unprecedented event' in the Nepali banking industry wherein five bank and financial institutions (BFIs) shall commence operation as a single entity.The plan for merger among NMB Bank, Bhrikuti Development Bank, Pathibhara Development Bank, Clean Energy Development Bank, and Prudential Finance, which was mooted in the last fiscal year, has finally materialized.
Issuing a statement, the bank said that the commencement of integrated operation of the merged entity under the name of 'NMB Bank' will begin from October 18.
"This move well establishes the bank's position as one of the leading commercial banks in the country, with bigger capital base to serve its customers better in every aspect," the statement reads.
According to the bank, the merger with two regional-level development banks will strengthen the bank's retail base as well as increase its footprint at a 'pan-Nepal level'.
Yong Lian -- a Malaysian firm - holds 13.16 percent stake in NMB Bank.
The merger is also important for NMB Bank as CEDBL has alliance with FMO (Financierings Maatschappij-voor Ontwikkelingslanden) of the Netherlands.
FMO is the International Development Bank of the Government of the Netherlands with investment portfolio strength of 3.4 billion euros. It 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 added.
According to the statement, the bank's total capital and reserves stands at Rs 6.2 billion, with consolidated deposit of Rs 54 billion and loans and advances of Rs 41 billion following the merger.
The merged entity will have 68 branch offices, eight extension counters, and 38 ATM terminals across the country.
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