July 16: Nepal Investment Bank Ltd (NIBL) has commenced joint operations with Jebil's Finance Ltd after its successful acquisition of the finance company.
Following the acquisition, the total paid-up capital of NIBL has increased to Rs 12.89 billion, the highest amongst the commercial banks in Nepal.
The bank said in a statement that its total deposit has reached Rs 147 billion and total loans Rs 132 billion.
The newly acquired company will serve as the 81st branch of NIBL at Pyukha, New Road.
During the commencement of the joint transaction, CEO of NIBL Jyoti Pandey indicated that mergers and acquisitions will be part of the bank’s strategic plan for the next fiscal year as well.
With the new acquisition, NIBL now has 81 branches, 118 ATMs, 14 extension counters, 10 revenue collection counters and 51 branchless banking facilities.
The acquisition comes in the wake of Nepal Rastra Bank (NRB)’s directive to banks and financial institutions (BFIs) to go for forced merger.
NRB had brought a new monetary policy three years ago under which all commercial banks were asked to increase the minimum paid-up capital from Rs 2 billion to Rs 8 billion by mid-July 2017 by merger or acquisition.
The central bank has maintained that it brought the new policy in order to minimize financial risks prevalent in the banking sector of the country.
Merger and acquisition, according to the central bank, would also mitigate the risk factors.
Meanwhile, NIBL said in the statement that it is the only bank in the country to have received the “Bank of the Year Award” five times from the Financial Times Group’s The Banker, a UK-based magazine.
It has also received the “Euromoney Award for Excellence” for the Best Bank 2018 and received a credit rating [ICRANP-IR] A+ from ICRA Nepal.