Kathmandu. More than 30 banks and financial institutions are in the process of consolidation. Banks and financial institutions are in the process of mergers and acquisitions as per the policy of Nepal Rastra Bank to reduce the number through capital increase and concessions. Most of these institutions are microfinance financial institutions.

Among the commercial banks, Citizens Bank is currently in the process. Citizens Bank is in the process of merging Tinau Mission, Tinau Mission Development Bank and Sirjana Finance. The bank has already entered into separate agreements with both the institutions. Tinau Mission is the development bank of Lumbini Province and Sirjana Finance is the finance company of Province 1.

Garima Development Bank and Sahara Development Bank are merging. An agreement was reached five months ago to merge Sahara Development Bank of Province 2 with national level dignity.

 Nepal Finance and Lalitpur Finance are in the process of merging. Nepal Finance is about to merge with Lalitpur Finance.

 The wave of mergers towards microfinance is fast. Of the 76 existing financial institutions, 23 are currently in the process of merging. Together, these institutions will form 11 financial institutions.

Among the microfinance institutions, Infinity Microfinance is currently merging with Nepal Agro Microfinance. Similarly, National Microfinance has also agreed to acquire Mahila Sahyatri Financial Institution.

Aarbha Chautari Microfinance has now agreed to merge BPW Microfinance and Deurali Microfinance.

Similarly, Diprox Microfinance is merging Nadep Microfinance, while Swadeshi Microfinance and NIC Asia Microfinance are merging. It has been mentioned that the name of microfinance will remain indigenous after the merger.

Similarly, the merger process between Samaj Microfinance and Swastik Microfinance is also moving forward. After the merger, the name of this institution will be Swastik Microfinance Financial Institution. On the other hand, after the merger of Samata and Domestic Microfinance, it has been agreed to name both the institutions indefinitely.

Apart from this, Mirmire Microfinance Financial Institution is merging creative microfinance financial institutions. Earlier, Mirmire had received Swedish microfinance. Similarly, Vijay Microfinance has agreed to acquire Khaptad Microfinance and Global IME Microfinance has agreed to acquire Sparsh Microfinance. A merger agreement has been reached between Ghodaghodi Microfinance and Unique Microfinance. I

Nepal Rastra Bank has licensed 27 commercial banks, 19 development banks, 20 finance companies, 76 microfinance and one infrastructure bank. So far, 27 commercial banks, 17 development banks, 18 finance companies and 64 microfinance institutions and one infrastructure bank will remain.