Global IME Bank and Janata Bank began integrated operations from today following the completion of the merger process.
The merger – between Global IME Bank and Janata Bank – is not only making the new entity the largest commercial bank of the country but also decreased the number of commercial banks to 27 from 28. The merged entity has started integrated operations under the name of Global IME Bank. While industrialist Chandra Dhakal is chairman, Parshuram Kunwar is the chief executive officer (CEO) of the merged Global IME Bank.
Addressing the beginning of integrated transactions of the Global IME Bank here today, finance minister Dr Yuba Raj Khatiwada said that banks should give priority to public benefits and interests. “Along with becoming the country’s largest bank, Global IME Bank should now keep public interest at its centre and work for the betterment of the entire banking sector,” he said, praising the merger.
Citing that a bank becoming bigger in size also means enhanced capacity to invest, Khatiwada urged Global IME to raise its investment in mega projects across different sectors.
The central bank had approved the merger plan of the two big commercial banks in the last week of September. The central bank had given them three months to complete the process and launch joint operations. Following the merger, the paid-up capital of Global IME Bank has reached Rs 24 billion making it the largest commercial bank in terms of paid up capital, apart from being the largest in terms of other key financial indicators like deposits and assets (loans). Likewise, Global IME Bank – after the merger – now has more than 300 branches, 295 ATMs and 33 extension counters across the country.
On the occasion, the central bank governor Dr Chiranjibi Nepal said that the merger between Global IME Bank and Janata Bank will encourage other commercial banks to opt for mergers. “The merged banks, after getting larger in size, should also look at raising capacity of its management team and make ample investment in security issues,” he said, adding that different cases have shown that banks need to work on capacity building of its staffs. “Amid rising banking threats, banks should invest enough in its human resources and security.”
The governor also advised banks to not primarily focus on profits only as it is promoting unhealthy competition them. He also asked the board of directors of banks not to put undue pressure on the chief executive officers to increase profits.
The biggest merger in the banking sector – that began five months ago – is likely to put pressure on other commercial banks to seek merger partners also. Though most of the banks have already submitted written commitments for merger to the central bank, they have not yet made any breakthrough in finding a partner.
The central bank – earlier in June – had sought merger commitments from banks. The monetary policy for the current fiscal year 2019-20 has introduced a gamut of incentives including relaxation of the interest rate spread cap for those pursuing mergers.
The merger – between Global IME Bank and Janata Bank – is not only making the new entity the largest commercial bank of the country but also decreased the number of commercial banks to 27 from 28. The merged entity has started integrated operations under the name of Global IME Bank. While industrialist Chandra Dhakal is chairman, Parshuram Kunwar is the chief executive officer (CEO) of the merged Global IME Bank.
Addressing the beginning of integrated transactions of the Global IME Bank here today, finance minister Dr Yuba Raj Khatiwada said that banks should give priority to public benefits and interests. “Along with becoming the country’s largest bank, Global IME Bank should now keep public interest at its centre and work for the betterment of the entire banking sector,” he said, praising the merger.
Citing that a bank becoming bigger in size also means enhanced capacity to invest, Khatiwada urged Global IME to raise its investment in mega projects across different sectors.
The central bank had approved the merger plan of the two big commercial banks in the last week of September. The central bank had given them three months to complete the process and launch joint operations. Following the merger, the paid-up capital of Global IME Bank has reached Rs 24 billion making it the largest commercial bank in terms of paid up capital, apart from being the largest in terms of other key financial indicators like deposits and assets (loans). Likewise, Global IME Bank – after the merger – now has more than 300 branches, 295 ATMs and 33 extension counters across the country.
On the occasion, the central bank governor Dr Chiranjibi Nepal said that the merger between Global IME Bank and Janata Bank will encourage other commercial banks to opt for mergers. “The merged banks, after getting larger in size, should also look at raising capacity of its management team and make ample investment in security issues,” he said, adding that different cases have shown that banks need to work on capacity building of its staffs. “Amid rising banking threats, banks should invest enough in its human resources and security.”
The governor also advised banks to not primarily focus on profits only as it is promoting unhealthy competition them. He also asked the board of directors of banks not to put undue pressure on the chief executive officers to increase profits.
The biggest merger in the banking sector – that began five months ago – is likely to put pressure on other commercial banks to seek merger partners also. Though most of the banks have already submitted written commitments for merger to the central bank, they have not yet made any breakthrough in finding a partner.
The central bank – earlier in June – had sought merger commitments from banks. The monetary policy for the current fiscal year 2019-20 has introduced a gamut of incentives including relaxation of the interest rate spread cap for those pursuing mergers.
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