Number of Commercial Banks Declining, Nabil, Prime, and Citizens Banks Preparing for Merger

Kathmandu. The number of commercial banks, which once stood at 27, has now dropped to 20 following several mergers. Recently, Nabil Bank, Prime Bank, and Citizens Bank, after concluding their general meetings, have initiated preparations for a merger.

Nabil Bank:
Nabil Bank’s general meeting has approved a proposal to merge with, acquire, or be acquired by other suitable banks and financial institutions. The bank has also decided to appoint a valuer to assess assets, liabilities, and transactions and has authorized the board of directors to carry forward the necessary processes, including foreign strategic partnerships.

Prime Bank:
Prime Bank has passed a merger proposal during its general meeting, granting full authority to the board of directors to execute the necessary procedures for merging with or acquiring other financial institutions.

Citizens Bank:
Similarly, Citizens Bank has also approved its merger policy. The bank has decided to appoint national or international valuers to assess assets and liabilities and has authorized the board to make preliminary and final agreements and complete all merger-related processes.

Nepal Rastra Bank’s merger policy has already reduced the number of commercial banks from 28 to 20. If the proposed mergers materialize, this number is expected to decline further. While mergers aim to strengthen the banking system, challenges like non-performing loans remain unresolved in some banks. Nonetheless, mergers continue to be a priority for the central bank.