Global IME Bank and Bank of Kathmandu merge start integrated transaction

KATHMANDU: After the merger, Global IME Bank and Bank of Kathmandu have started an integrated transaction under the name of Global IME Bank Limited.

During a special program held in Kathmandu on Monday, Prime Minister Pushpa Kamal Dahal 'Prachanda' launched the integrated transaction after the merger of the two banks.

Addressing the integrated business function, Prime Minister Dahal said that when banks are big, it will help in raising investment in big projects.

'The bank merger is an extraordinary thing, it is commendable. When the bank is big, it will help in raising investment in big projects. "It is necessary for big banks to work to improve the latest banking services and financial literacy to the far corners of the country," he said.

Stating that Global IME Bank Chairman Chandra Dhakal, who started his professional journey from a small business, has a lot in common with his political life, Prime Minister Dahal congratulated and wished President Dhakal for becoming the chairman of the country's largest bank.

The Chief Secretary of the Government of Nepal Shankardas Bairagi said that there is no need to discourage the private sector as there are signs of positive improvement in the economy.

There are positive signs in the economy and improvement in economic indicators. A large merger of banks can contribute greatly to the stability of the financial sector, he said.

Mahaprasad Adhikari, Governor of Nepal Rastra Bank, said that the merger of banks and financial institutions will reduce financial intermediation costs as banks and financial institutions become bigger and stronger.

He said that as banks become bigger due to mergers, banks should be self-regulated. He also said that big banks should maintain internal limits on single customer limits and provide loans to small and medium borrowers.

Global IME Bank President Chandra Prasad Dhakal said that today is a historic day for the Nepali banking sector and said that with this merger, Global IME Bank has become the number 1 bank in Nepal in most of the financial indicators.

President Dhakal said that after Nepal Rastra Bank announced the merger policy, Global IME Bank followed it and was the leader in implementing the merger policy of the government and Nepal Rastra Bank.

Similarly, Shekhar Golchha, president of the Federation of Nepalese Chambers of Commerce & Industry (FNCCI), said that the merger will make the bank stronger and the stronger bank will help to make the economy stronger.

President of Confederation of Nepalese Industries (CNI) Vishnu Agarwal expressed his best wishes to Global IME Bank for a successful merger and also asked Global IME Bank to take initiatives to reduce interest rates.

Prakash Shrestha, chairman of Bank of Kathmandu, said that the merger was done to expand the bank's capital base and develop capacity. He said that the confidence of the common people in the banking sector is increasing and this will play a positive role in improving the country's economy.

Radhesh Pant, director of Bank of Kathmandu and coordinator of the joint merger committee, said that the merger was completed within 6 months of the first merger agreement. Stating that both banks have their own characteristics, he said that after the merger, the cost of the bank's business will be reduced.

The Board of Directors of the new bank will consist of 5 people including Chairman Chandra Prasad Dhakal on behalf of Global IME Bank and 2 people on behalf of Bank of Kathmandu.

Similarly, Ratnaraj Bajracharya, the chief executive officer of Global IME Bank, will remain as the chief executive officer of the bank.

5 commercial banks, 10 development banks and 6 finance companies are included in Global IME Bank Limited, which is a merger of 21 banks and financial institutions.

After the merger, the bank's total assets are 5 trillion rupees, total capital is 57 billion rupees, paid-up capital is 35.77 billion rupees, total deposits are 4 trillion 12 billion rupees, and total loans are 3 trillion 77 billion rupees.

The new bank formed after the merger has become the largest bank in Nepal in terms of total capital, paid-up capital, branch network and business size.

After the merger, Global IME Bank Limited will be the largest bank in the country with a total of 365 branch offices, 367 ATM, 286 branchless banking services, 61 expanded branch offices, 3 foreign contact offices, more than 4 million customers and many other financial indicators, the bank said.