Global IME, Commerz and Trust start operation as merged entity

KATHMANDU, April 10:

Global IME Bank and Commerz and Trust Bank started operation as a merged entity - Global IME Bank Ltd -- on Wednesday.

Finance Minister Ram Sharan Mahat inaugurated the merged entity amid a function held at the Panipokhari-based headquarters of at Global IME Bank.

This is the second merger of commercial banks in the country. NIC Bank and Bank of Asia had merged to form NIC Asia Bank in July last year.

Speaking at the function, Mahat said bank and financial institutions (BFIs) should take a lead for economic development of the country. Stating that the banking sector was modern and sophisticated sector in comparison to other sectors of the economy, he said the banking sector should take the leading role rather than just following the economic development.

Dignitaries at the ‘merger ceremony’ of Commerz and Trust Bank and Global IME Bank held on Wednesday at IME Complex, Panipokhari on Wednesday. (Republica)

Referring to liquidity surplus in the banking system, Mahat urged the BFIs to explore new sectors for lending. “We need more investment to boost production and create more jobs.

BFIs should help the country in this regard,” he added. Mahat also said merger would help the BFIs reduce their operation cost and enhance their capacity to expand their services.

Nepal Rastra Bank Governor Yuba Raj Khatiwada said the central bank encouraged BFIs to undergo merger realizing that growth in the number of BFIs failed to make banking services available across the country. “The merger policy aims to make the banking sector competitive, inclusive and intensive,” Khatiwada said, adding, “We are also bringing acquisition policy to enable big and vibrant BFIs to acquire smaller BFIs.”

Addressing the ceremony, Global IME Chairman Chandra Prasad Dhakal said it was the responsibility of the bankers to help the government in economic development. “Global IME has been putting emphasis on retail banking ever since its establishment. We will continue it in the days to come,” he added.

Global IME Bank has paid-up capital of Rs 6 billion and customer base of more than Rs 500,000. It operates with 120 branches and 80 ATM locations. The bank has mobilized total deposits of Rs 49 billion and made loan investment of Rs 41 billion.

Source: Republica