Kathmandu. After the announcement of the National Bank of India to give discount facilities only to the banks that have integrated business till the end of December, the banks that have entered into merger agreement have also moved forward with preparations to do integrated business soon.

Nepal Investment-Mega, Global IME-Bank of Kathmandu and Himalayan-Civil Bank, which have entered into a merger agreement, are preparing to carry out integrated business in November or at the latest in January. Nepal Investment and Mega Bank have planned to complete all the merger work within August/October and carry out integrated business. It is understood that Global IME and Bank of Kathmandu are also preparing to conduct integrated business around Dashain.

Bank sources say that between Himalayan Bank and Civil Bank, which has finally signed the merger agreement, the integrated business will be done as soon as possible in November or if not in January.

Reducing the number of 28 commercial banks to only 10/12 was a very ambitious plan. However, there was a merger between Global IME Bank and Janata Bank. The merger was considered as a 'big merger' in the banking sector. Many people predicted that there would be a wave of mergers among commercial banks after becoming the largest global bank.

In a short period of time, merger agreements were signed between Nabil and Nepal Bangladesh Bank (whose integrated business has already started), Nepal Investment-Mega Bank, Global IME-Bank of Kathmandu and Himalayan-Civil Bank.

With the beginning of the new financial year 2079/80, the topic of merger between these banks has been discussed. This also leads to the understanding of many that the banks are involved in the merger only for the sake of profit and to get the facilities of the National Bank rather than the need for the merger.

Nepal Rastra Bank has given time till the end of January for the merger of commercial banks and microfinance through the monetary policy of the financial year 2079/080. Rastra Bank has already announced to stop the facilities given to those who will merge after the end of December 2079.

"Only if commercial banks and microfinance institutions merge within their own categories or conduct integrated transactions by the end of January 2079, the discounts and facilities provided by this bank will be available," said the monetary policy.