Civil Bank merge plan

Axis Development Bank and Civil Merchant Finance Company have plan to merge with Civil Bank Ltd. The three financial institutions have signed a MoU to this effect. Both Civil Bank and Civil Merchant Finance are promoted by the Civil Group. Likewise, Axis Development Bank was formed a year ago, following the merger between Pashupati Development Bank and Udhyam Bikas Bank. After the merger, the total number of branches of Civil Bank Ltd will reach a total of 32 and the number of accounts will exceed seven million, according to a press statement issued by the bank.

Civil Bank has a paid up capital of Rs two billion, while the paid up capital of Axis Development Bank stands at Rs 718 million, and Civil Merchant Finance Company’s paid up capital is worth Rs 166 million.

Civil Bank will be the sixth commercial bank to undergo a merger. Two years back, Nepal Bangladesh Bank had to merge with Nepal Sri Lanka Merchant Banking and Finance. Last year, Machhapuchchhre Bank merged with Standard Finance. Likewise, in the last fiscal year NIC Bank and Bank of Asia Nepal merged to become NIC Asia Bank. Also, Global IME Bank that was formed after the merger between Global Bank and two finance companies—IME Financial Institution and Lord Buddha Finance—further merged with Social Development Bank and Gulmi Bikas Bank two months back.

The Nepali financial system has witnessed 18 sets of mergers since the promulgation of Merger Bylaws two and a half years back by the central bank.