November 29: Global IME Bank is all set to be the biggest commercial bank of Nepal in terms of paid-up capital after its merger with Janata Bank. Nepal Rastra Bank has given permission for the merger of the two banks. The merger process has been finalized after a board meeting of the central bank on Wednesday (November 27) gave the go ahead.
Spokesperson of Nepal Rastra Bank, Laxmi Prapanna Niraula, confirmed that the central bank has approved the merger process.
Chairman of Global IME Bank Chandra Prasad Dhakal said that the two banks will start integrated transaction from December 6.
As per the agreement between the two banks, the name of the new entity after merger will remain Global IME Bank. Chairman Dhakal will also retain his position while Janata Bank’s CEO Parshuram Kunwar will take over the responsibilities of the CEO of the new entity. Meanwhile, the current acting CEO of Global IME Bank Mahesh Sharma Dhakal will be named as the senior deputy CEO after merger.
The board of directors will include five members from Global IME Bank and two from Janata Bank.
After the merger, Global IME Bank will be the biggest commercial bank of the country in terms of its paid-up capital. The paid-up capital of the ban will reach Rs 19 billion after the merger.
The bank will have its presence in all 77 districts while the customer base will also reach 2 million.
Global IME Bank and Janata Bank were the first to agree to the “big merger” initiative taken by the central bank. The two banks had agreed for the merger on July 5 earlier this year.
Meanwhile, the acting CEO of Global IME Bank, Mahesh Sharma Dhakal said that although the central bank as approved their merger, the banks are yet to receive official letter from Nepal Rastra Bank.
The merger committee has decided to start integrated transaction within one week.