NIC Bank and Bank of Asia formally merged

NIC and Bank of ASIA has formally merged and started its operation as NIC Asia Bank from 30th June, 2013. This is the first merger of “A” Class Commercial Banks in the history of Nepal after the Central Bank adopted the policy of encouraging merger between Banks and FIs.

The bank will have 53 branches and 57 ATMs. The bank has a customer base of 270,000 and a capital base of 5 billion. The bank has a deposit base of 38 billion and loan portfolios of 33 billion.

A couple of development banks and Financial Institutions have already gone into merger and started their operation. While few number of Development Banks and Financial Institutions are under the process of merger and likely to complete the merger process soon. The recent trend of Banks & FIs going into merger clearly indicates that there will be a sizeable number of Banks, Development Banks and Financial Institutions considering the size of economy after few years. Banks and Development Banks are primarily targeting to acquire “C” Class Finance Companies which will fairly downsize the number of Finance Companies one year from now.

The number of “A” Class Banks in Nepal has now reduced from 32 to 31 after the merger between two banks.