List of BFIs that have successfully underwent merger and acquisition in FY 2071/72

ShareSansar, August 2;

The Central bank had introduced the merger policy four years back in a bid to slash the number of mushrooming BFIs in the country. Similarly, acquisition policy also, envisages a BFI to acquire another BFI by paying the due amount to the promoter shareholders after calculating the assets of the later company.

The BFIs have started the merger and acquisition process after the regulator came up with a merger and acquisition policy.

As directed by the central bank, many banking and financial institutions (BFIs) have merged and many are seeking merger and acquisition. Such merger and acquisition have immense bearing on the shareholders of the BFIs concerned, though it also has some impact on the stock market itself.

Earlier in the fiscal year 2070/71 many BFIs had completed the merger and acquisition and the fiscal year 2071/72 too, the BFIs undergo merge and acquisition process to soar up their paid-up instead of looking for other sources of capital.

The number of merged Banks and financial institutions (BFIs) are increasing gradually. In the fiscal year 2071/72 one commercial bank , 15 development banks and 4 financial institutions have merged and turned into 1 commercial bank (Prabhu Bank Ltd), 5 development banks  (Nepal Grameen Bikas Bank Ltd., Triveni Bikash Bank, Garima Bikas Bank, Fewa Bikas Bank, Deva Bikas Bank)  and a finance company (Sagarmatha Finance Limited ) .

During the last fiscal year 2071/72 a commercial bank has acquired 2 finance companies and a development bank has acquired another development bank.

BFIs which have completed merger in this fiscal year 2071/72 and started the joint operation are:

BFIs which have successfully completed acquisition and started the joint operation are: