The Nepal Rastra Bank ( NRB ) board on Thursday gave its final approval
to the proposed merger between NIC Bank and Bank of Asia Nepal (BoAN).
An NRB board member said the path has been cleared for the banks to merge. It is the first time that two commercial banks are merging in the country’s banking history. The banks, largely promoted by the same group, had signed a memorandum of understanding for their amalgamation on June 28, 2012.
NIC Chief Executive Officer Sashin Joshi said they plan to complete the merger process within June 30 and create a single balance-sheet within mid-July. After the amalgamation, the merged entity will be known as NIC Asia Bank.
According to Joshi, they now have three major tasks remaining — integration of the core banking system (Finacle) which enables any-branch-banking-service and is already being used by BoAN; integration branches; and integration of employees.
The banks currently have 65 branches, with 36 NIC branches and 29 BoAN outlets. “The merged entity will have 51 branches,” said Joshi, who will lead the new entity as its CEO. He said no staff will be laid off. The banks together have around 700 employees.
NIC Asia Bank will have a paid-up capital Rs 2.31 billion, making it one of the few commercial banks having such a huge capital.
An NRB board member said the path has been cleared for the banks to merge. It is the first time that two commercial banks are merging in the country’s banking history. The banks, largely promoted by the same group, had signed a memorandum of understanding for their amalgamation on June 28, 2012.
NIC Chief Executive Officer Sashin Joshi said they plan to complete the merger process within June 30 and create a single balance-sheet within mid-July. After the amalgamation, the merged entity will be known as NIC Asia Bank.
According to Joshi, they now have three major tasks remaining — integration of the core banking system (Finacle) which enables any-branch-banking-service and is already being used by BoAN; integration branches; and integration of employees.
The banks currently have 65 branches, with 36 NIC branches and 29 BoAN outlets. “The merged entity will have 51 branches,” said Joshi, who will lead the new entity as its CEO. He said no staff will be laid off. The banks together have around 700 employees.
NIC Asia Bank will have a paid-up capital Rs 2.31 billion, making it one of the few commercial banks having such a huge capital.
