Why NRB pressure on these banks to merge ?

Sep Wed 2022 01:21:55

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Why NRB  pressure on these banks to merge ?

Kathmandu. The issue of Nepal Rastra Bank putting pressure on commercial banks for merger is not new. Even before this, they used to call the bank's chief executive officer or other officials to the Rashtra Bank and pressurize them for the merger. However, this time, it is understood that some bankers are constantly being called to the National Bank and putting intense pressure for the merger.

The two banks NCC and Kumari Bank, which were pressured by Nepal Rastra Bank, have already agreed to merge. Kumari and NCC Bank have already agreed on a 1:1 swap ratio on Monday. Kumari and NCC, which the National Bank is seeking to merge together, have signed an agreement for a bank merger, and other banks are also under pressure.

Nepal Rastra Bank is putting pressure on Sunrise, Machhapuchhre, Citizens, Lakshmi, Siddharth and Sanima Bank for merger. Sources say that the National Bank is urging these banks to enter into a merger agreement by the end of December.

Siddharth, Citizens Bank and Sanima Bank have not shown much interest in the merger. Other banks are looking for partners for merger. It is understood that there are continuous discussions for merger between each other. Sources say that the pressure on the banks has also increased as the National Bank has instructed to complete the merger agreement by the end of January.