State-owned banks should pursue merger, says NRB Governor

KATHMANDU: Nepal Rastra Bank (NRB) Governor Maha Prasad Adhikari has suggested three state-owned banks pursue merger.

Speaking at the 85th anniversary celebration of Rastriya Banjiya Bank Ltd (RBBL) in Kathmandu on Tuesday, Adhikari said RBBL, Agricultural Development Bank Ltd and Nepal Bank Ltd should begin merger talks.

“The mergers of commercial banks in recent days have dwarfed the state-owned banks. Therefore, these banks should take merger seriously, realizing the changed context,” he added.

Referring to the recent mergers of Class ‘A’ banks, Adhikari said the central bank did not force banks to undergo mergers. These banks studied the market and felt the need to become bigger and stronger, he added.

“The state-owned banks also should not make any delay to study the market and take needful decisions,” Adhikari added.

The banking industry saw four mergers of commercial banks – Kumari Bank and NCC Bank, Bank of Kathmandu and Global IME, Nepal Investment Bank and Mega Bank, and Prabhu Bank and Century Commercial Bank – in the past month. A few more mergers are in the pipeline.