Global IME Bank to merge with Commerz and Trust Bank

Global IME and Commerz and Trust Bank would be the second “A” Class Bank to go into merger. Prior to this, NIC and Bank of Asia merged into one from 30th June 2013. The total number of commercial banks will be 30 after the merger process completes formally.

Global IME bank had already integrated IME Financial Institution, Lord Buddha Finance, Social Development and Gulmi Bikash Bank in its merger drive in the past one and half years.

The merged entity shall operate in the name of Global IME Bank Ltd with incumbent CEO. Bank’s equity base will be Rs 4.41 billion, deposit base of Rs 48 billion, credit base of Rs 39 billion and customer base of 451 thousand. The bank will have 87 branches, 7 extension counters, 17 branchless banking services and 80 ATM outlets.

The merged entity would be the biggest bank in terms of equity base amongst private sector promoted bank and would remain in the third position amongst “A” Class banks after Agriculture Development Bank and Rastriya Banijya Bank. The bank would be one of the largest banks in terms of total branch penetration after Agriculture Development Bank, Rastriya Banijya Bank and Nepal Bank Ltd.

The recent merger drive of Bank and Financial Institutions can be attributed to the shrunk investment opportunity because of stagnant financial market for last few years. The merger drive is likely to be continued until the number of players fairly downsizes in proportion to the size of financial market.  The recent merger initiatives are believed to be fruitful to further consolidate financial sector industry and stabilize the industry from longer term perspective.