Speaking at the inaugural programme, Prabhu Chairman Devi Prakash Bhattachan said they would focus on expanding their investment in big projects. “For the purpose, we are ready to join hands with other commercial banks to work in consortium,” he said.

In March 2013, Kist Bank had signed an MoU to merge with Vibor Bikas Bank. However, the merger fell apart after seven months.

Prabhu Bikas Bank was formed through the merger of Prabhu Finance Company, Sambriddhi Bikas Bank and Bhaibhav Finance Company on July 14 last year. With promoters of the Prabhu group acquiring bigger stake at

Kist, the name of the new bank was decided to be changed. It is one of the biggest mergers in Nepali financial sector’s history.

Prabhu Bank now has 112 branches and 108 ATM counters across the country. Its deposit collection stands at Rs 32.39 billion, while credit disbursement is Rs 23.78 billion. It has 1,135 staffers and 631,000 customers. Bhattachan said the newly formed bank would now go for acquisitions.

Inaugurating the merged entity, Nepal Rastra Bank Governor Yubaraj Khatiwada said all the banks have to

concentrate on long-term

sustainability. “It is not important how bigger a bank has become after a merger, but the quality services it would provide to its customers,” he said. “Merger is just like keeping financial institutions in the rehabilitation centre that gives them proper direction.”

Khatiwada stressed on the need for banks to have their financial conditions properly assessed time and again. He urged bankers to change their mindset that banks would not fail at any cost. He said merger alone might not solve all the problems.

“We have to compare the returns to alternative earnings of the capital after the merger,” said Khatiwada, asking banks to focus more on providing quality financial services rather than focusing on quantitative growth.

Amid banks being attracted towards debt financing, Khatiwada urged bankers to switch to the equity financing. Stressing on the need for banks to be more competitive compared to foreign banks, he asked bankers to make banking business more entrepreneur friendly.