Kathmandu. The policy arrangements for the merger of two large state-owned banks Nepal Bank and National Commercial Bank within one year will be made in the next year's budget. Currently, 3 banks are operating with government investment. Government has 100% investment in National Commercial Bank, while Government has 51% ownership in Krishi Bikas Bank and Nepal Bank. Krishi Bikas Bank and Nepal Bank are also listed in the Nepal Stock Exchange by selling shares to the general public.

The government has reached a decision to merge Nepal Bank and Commercial Bank as it will be easier to compete with private sector banks. Currently, Global IME Bank is the largest private sector established bank based on paid up capital. The paid-up capital of Global IME Bank has reached over 35.77 billion. Similarly, the second largest bank is Nepal Investment Mega Bank, which was established from the private sector. The paid-up capital of Nepal Investment Mega Bank has reached 34.12 billion.

If the two largest state-owned banks Nepal Bank and National Commercial Bank merge, the third largest bank will be formed. Currently, the paid-up capital of National Commercial Bank is 15.63 billion rupees and the paid-up capital of Nepal Bank is 14.69 billion rupees.

If both the banks are merged on an equal basis, it will become a bank with a paid-up capital of 30 billion 33 crore rupees. Similarly, National Commercial Bank has 19.6 billion rupees in its reserves, while Nepal Bank has 20.86 billion rupees in its reserves. If the two banks merge, the capital fund of the integrated bank will reach 70 billion 78 million rupees.