Deva Bikas begins integrated transaction acquiring Union Finance and Sajha Bikas Bank

Kathmandu: The Deva Bikas Bank began its integrated transaction after acquiring the Union Finance Limited and Sajha Bikas Bank from Thursday.

Aiming to achieve the minimum paid-up capital of Rs. 2.5 billion as per the Nepal Rastra Bank directive, the bank acquired both the companies.

Officiating governor of the Nepal Rastra Bank Chinta Mani Siwakoti inaugurated the integration transaction of the Deva Bikas Bank amidst a function today.

Siwakoti asked the banks and financial institutions to go to the rural areas with innovative and creative to bring the rural people in the banking net.

Highlighting the role of the banks to formulate capital by investing in the productive sector, he said and added that the banks should go to the rural areas to collect money which is still out from the banking channel.

NRB’s merger policy is becoming effective not only to enhance the financial state strong of the institution but also to provide effective and modern banking services reaching out to the people’s doorsteps.

“We are encouraging the banks and financial institutions to go in rural areas where the NRB is offering subsidy to them. It is still forcing the banks to go more than 200 local levels out of 753 local levels where there banks reached there,” Siwakoti said.

Stating that the financial sector has been in improving trend, he said that around 2,293 billion was in deposit and lending Rs. 1,948 billion in the banking sectors.

A total of 197,000 accounts including saving, fixed and current are in the all banks, he said.

Chairman of Deva Bikas Bank Subarna Bajracharya said that the bank would focus to provide modern banking services to the people reaching in people doorsteps in the days to come.

After the acquisition, the paid-up capital of the bank reached at Rs. 2.24 billion, which is near to meet the NRB’s paid-up capital, said Bijaya Bahadur Shrestha, Chief Executive Officer (CEO) of the Bank.

The required paid up capital of bank would reach to its target plan to issue the right shares and profit from the last fiscal year, he said.

After acquiring both the institutions, the bank will provide its services from more than 49 branches including 9 extension counters, he said.

The banks would expand its services across the country by utilising its human resources and capital as the bank’s strength in terms of capital and resources would be enhanced after acquiring the both institutions.

According to him, it will start the integrated transaction from the current fiscal year with the Sahara Bikas Bank as the bank has forwarded the process to acquire it.