Kathmandu. It has been seen that there has been a huge increase in the bad loans of the commercial banks that have gone through the merger. This was seen in the unrefined financial statements of the second quarter of the current financial year released by the banks.

According to the published financial statements, the bad loans of Nepal Investment Bank and Mega Bank, which had 1.57 percent bad loans till the first quarter of the current year, have now reached 3.71 percent after the merger between Nepal Investment Bank and Mega Bank. As of the first quarter of the current year, Mega Bank's bad loans were only 2.55 percent. Nepal Investment and Mega Bank merged with each other and conducted integrated business from January 26.

Likewise, the bad loans of Global IME Bank reached 2.92 percent at the end of December. By the end of October, the bank's bad debt was 2.10 percent. Global IME and Bank of Kathmandu have merged and integrated business from 25th of January. BOK's bad loans stood at 2.46 percent until mid-October, i.e. the first quarter of the current year. After the merger of these two banks, all the financial transactions conducted by both institutions were done under the name of Global IME Bank Limited.

Similarly, bad loans of Kumari Bank which merged with Nepal Credit and Commerce Bank reached 3.25 percent. While Kumari Bank's bad loans were only 1.28 percent in the first quarter of the current year, NCC Bank's bad loans were 2.46 percent. After the merger, these two banks have integrated business from 17th of January.

Prabhu Bank's bad loans have reached 1.98 percent by the end of the current financial year. While until the end of October, bad loans of the bank were 1.68 percent. Prabhu Bank has integrated business since 26th of January after acquiring Century Bank. By the end of October, the bad loans of Century Commercial Bank were 1.88 percent.