In a monumental development for Nepal’s banking sector, Nabil Bank Limited (NABIL) has successfully completed its acquisition of Nepal Bangladesh Bank Limited (NBB). The merger establishes Nabil Bank as the largest financial institution in the country, setting a new benchmark for the industry. The acquisition reflects the growing trend of consolidation in Nepal’s banking sector, aimed at enhancing efficiency, stability, and competitiveness.
This process began with an initial agreement in January 2023, and after securing shareholder approval on Jestha 7, the merger received the green light from Nepal Rastra Bank (NRB) on Ashad 15. Integrated financial transactions under the name Nabil Bank Limited commenced on Ashad 27 (July 11, 2023), completing the acquisition process.
The deal involved a share swap ratio of 100:43, meaning 100 shares of Nepal Bangladesh Bank were exchanged for 43 shares of Nabil Bank. This structure not only streamlined the merger but also ensured that NBB shareholders became part of the larger, stronger Nabil Bank.
Key Financial Transformations
The merger has had a profound impact on the financial position of the new entity. The combined paid-up capital now stands at NPR 22.83 billion, reflecting the inclusion of 43% of NBB’s existing paid-up capital. This capital infusion, alongside Nabil Bank’s existing reserves, enhances its capacity to take on larger projects and expand its business portfolio.
The bank’s total deposits and loans have reached NPR 320 billion and NPR 309 billion, respectively, making it the industry leader in both categories. Additionally, the non-fund-based business has grown to NPR 145 billion, showcasing the breadth of services the new Nabil Bank can offer.
Profitability has also been bolstered, with the annual profit expected to exceed NPR 6 billion, the highest in Nepal’s banking history. For context, in the third quarter of FY 2078/79, the combined net profit of both banks stood at NPR 4.46 billion, demonstrating strong financial performance.
The merger has also improved the bank’s net worth, which now totals NPR 49.94 billion. The net worth per share has increased to NPR 218.71, further solidifying investor confidence.
Operational Enhancements
The integration of NBB into Nabil Bank has significantly expanded the bank’s operational network. With 254 branches, 292 ATMs, and 16 extension counters, Nabil Bank now serves over 1.6 million customers across Nepal. This extensive reach ensures better access to financial services, especially in underserved areas, contributing to greater financial inclusion.
The merger has also added over 2,300 employees to Nabil Bank’s workforce, reflecting the scale of the operation. Plans are underway to optimize human resource integration and enhance operational efficiency while maintaining employee satisfaction.
A Legacy of Innovation and Growth
Nepal Bangladesh Bank, established with the vision of advancing Nepal’s banking landscape, was co-founded by NB Group, a leading business conglomerate in Nepal. Since its inception in the 1950s, NB Group has played a pivotal role in the growth of Nepal’s financial sector. As a promoter of institutions like Nepal Bangladesh Bank, NB Insurance, and National Hydro Power Company, the group’s contributions have shaped Nepal’s economic progress.
This merger represents the continuation of a legacy built on trust, innovation, and collaboration. By joining forces with Nabil Bank, the strengths of Nepal Bangladesh Bank—such as its customer-first approach and innovative practices—are seamlessly integrated into the operations of the new entity.
Impact on the Banking Sector
This merger marks a significant milestone for Nepal’s banking industry. With the total number of commercial banks reduced to 26, the Nepal Rastra Bank’s vision of a streamlined and robust banking sector takes a step closer to realization.
The consolidated Nabil Bank is now better positioned to compete regionally and globally, thanks to its enhanced capital base, extensive network, and strong profitability metrics. Its market leadership in deposits and loans highlights its critical role in supporting Nepal’s economic growth.
Beyond financial metrics, the merger underscores the importance of collaboration and strategic planning in building institutions capable of driving long-term development. For customers, this means better services, greater convenience, and innovative financial solutions.
The Road Ahead
The integration of Nepal Bangladesh Bank into Nabil Bank is not just a merger of two institutions but a convergence of visions and values. With a strengthened position in the market, Nabil Bank is poised to lead Nepal’s banking sector into a new era of growth and innovation.
This merger also reflects the enduring impact of institutions like NB Group, whose vision and leadership have paved the way for transformative milestones in Nepal’s financial history. As the largest financial institution in Nepal, Nabil Bank is now set to redefine excellence in banking and contribute to the nation’s economic aspirations.