Kathmandu. The merger and acquisition drive in Nepal’s banking and financial sector over the past one and a half decades has significantly transformed the size and structure of banks. According to Nepal Rastra Bank records, banks, development banks and finance companies have been merged or acquired in different phases, creating the structure of many of the country’s largest banks today.
Based on the number of institutions incorporated into a bank’s present structure, Global IME Bank stands at the top, followed by Prabhu Bank, Kumari Bank and Nepal Investment Mega Bank, among others.
Global IME Bank Leads with 21 Institutions
Global IME Bank has built its current structure by bringing together the largest number of financial institutions. Starting with Global Bank, its consolidation journey included IME Finance, Lord Buddha Finance, Commerz and Trust Bank, Social Development Bank, Gulmi Bikas Bank, Pacific Development Bank, Triveni Development Bank, Public Development Bank, Bright Development Bank, Janata Bank Nepal, Siddhartha Development Bank, Ekta Bikas Bank, Nepal Housing Finance, Reliable Finance, Subhalaxmi Finance, Nepal Consumer Development Bank, Hathway Finance, Lumbini Bank, Navadurga Finance and Bank of Kathmandu.
Based on this consolidation history, 21 institutions apart from itself have been incorporated into the current structure of Global IME Bank.
Prabhu Bank Brings Together 14 Institutions
Prabhu Bank is also among the banks that have undergone extensive consolidation. Starting from Prabhu Finance, its integration journey included Samriddhi Development Bank, Vaibhav Finance, Kist Bank, Gaurishankar Development Bank, Zenith Finance, Grand Bank Nepal, Arniko Development Bank, Surya Development Bank, Innovative Development Bank, Century Commercial Bank, Sagarmatha Merchant Banking and Finance, Patan Finance, Alpine Development Bank and Seti Finance.
As a result, 14 institutions apart from itself have been incorporated into the present structure of Prabhu Bank.
Kumari Bank Integrates 20 Institutions
Kumari Bank has also built a large financial structure through a long consolidation process. Starting with Kasthamandap Development Bank and Shikhar Finance, the bank later incorporated Mahakali Development Bank, Kakrebihar Development Bank, Paschimanchal Finance, NDEP Development Bank, Rising Development Bank, Sajha Development Bank, Union Finance, Western Development Bank, Namaste Financial Institution, Infrastructure Development Bank, Swastik Merchant Finance, Annapurna Development Bank, Suryadarshan Finance, Royal Merchant Banking and Finance, Rara Development Bank, AP Finance, International Development Bank and Nepal Credit and Commerce Bank.
The bank has therefore incorporated 20 institutions apart from itself into its current structure.
Nepal Investment Mega Bank Incorporates 11 Institutions
The present structure of Nepal Investment Mega Bank has also been shaped through the integration of several financial institutions. The institutions incorporated into its structure include Vishwa Bikas Bank, Fewa Finance, Gandaki Development Bank, Mega Bank Nepal, Paschimanchal Development Bank, Tourism Development Bank, Matribhoomi Development Bank, Kalinchowk Development Bank, Nepal Investment Bank, Ace Development Bank, Jebils Finance and City Express Finance.
Based on the provided consolidation details, Nepal Investment Mega Bank has incorporated 11 institutions apart from itself.
Laxmi Sunrise Bank Also Built Through Consolidation
Laxmi Sunrise Bank is another major bank whose present structure was formed through the integration of several institutions. Narayani Finance, National Finance, Sunrise Bank, NIDC Capital Market, Diyalo Development Bank, Professional Development Bank, Laxmi Bank and Hiseph Finance have been incorporated into its consolidation journey.
Himalayan Bank Integrates Seven Institutions
Himalayan Bank has also expanded its structure through mergers and acquisitions involving more than half a dozen institutions. Pashupati Development Bank, Udyam Development Bank, Civil Merchant Financial Institution, Civil Bank, International Leasing and Finance, Unique Finance and Hama Merchant and Finance have been incorporated into its structure.
The bank has therefore integrated seven institutions apart from itself.
Nabil Bank Brings Four Institutions Together
Nabil Bank has incorporated Nepal Bangladesh Bank, Nepal Bangladesh Finance, Nepal Sri Lanka Merchant Finance and United Finance into its structure.
On this basis, Nabil Bank has added four institutions apart from itself through the consolidation process.
NMB Bank Integrates Nine Institutions
The structure of NMB Bank has been shaped through the integration of Prudential Finance, Gorkha Finance, Pathibhara Development Bank, Bhrikuti Development Bank, Clean Energy Development Bank, City Development Bank, Om Finance, Manaslu Development Bank and Kanchan Development Bank.
Thus, NMB Bank has incorporated nine institutions apart from itself.
Citizens Bank Incorporates Eight Institutions
Citizens Bank International has expanded its structure by incorporating Nepal Housing and Merchant Finance, Peoples Finance, Premier Finance, Sahayogi Development Bank, Tinau Development Bank, Mission Development Bank, Nepal Community Development Bank and Srijana Finance.
The bank has therefore incorporated eight institutions apart from itself.
Prime Commercial Bank Adds Seven Institutions
Prime Commercial Bank has also expanded through mergers and acquisitions involving Biratlaxmi Development Bank, Khandbari Development Bank, Country Development Bank, Kankai Development Bank, Kailash Development Bank, Metro Development Bank and Nepal Express Finance.
This means Prime Commercial Bank has incorporated seven institutions apart from itself.
Other Banks Also Expanded Through Mergers
The structure of NIC Asia Bank was formed through the integration of NIC Bank and Bank of Asia Nepal, meaning one institution apart from itself was incorporated into its structure.
Similarly, Siddhartha Bank expanded by incorporating Business Development Bank and Universal Finance, adding two institutions apart from itself.
Sanima Bank incorporated Bagmati Development Bank into its structure, while Machhapuchchhre Bank expanded by merging with Standard Finance.
Likewise, Rastriya Banijya Bank incorporated Rastriya Industrial Development Bank into its structure.
The consolidation drive over the past one and a half decades has therefore played a major role in reshaping Nepal’s banking landscape. The merger and acquisition process has brought numerous banks, development banks and finance companies under larger financial institutions, contributing to the formation of the bigger banking structures operating in Nepal today.
