Nepal Rastra Bank (NRB) has given the final approval for the merger of four different banks and financial institutions (BFIs) into NMB Bank. Bhrikuti Development Bank, Pathibhara Development Bank, Clean Energy Development Bank and Prudential Finance are going to be merged into NMB Bank, according to a press release.

The merged bank will retain the name NMB Bank. It will have a paid-up capital of Rs 4.15 billion and will come into operation from October 18 this year.

The total deposits and lending of the merged bank will be Rs 54 billion and Rs 41 billion. The merged bank will have 68 brnaches, 38 ATMs and eight extension counters.

“We have prepared a three-stage plan to raise our paid-up capital. As per the plan, the paid-up capital will be raised to Rs 6 billion by the end of the current fiscal year,” said NMB Bank CEO Upendra Poudyal.

According to Paudyal, 20 percent stakes of the bank formed after the merger will be owned by the bank’s foreign joint venture partners.

Malaysian bank Young Lian and the Netherland’s FMO (Financierings Maatschappij-voor Ontwikkelingslanden) will invest in the merged entity.