An agreement has been reached for a merger between Jeevan Bikas Laghubitta Bittiya Sanstha Limited, headquartered in Katahari, Morang, Unique Nepal Laghubitta, based in Kohalpur, Banke, and Manushi Laghubitta, based in Banepa, Kavrepalanchok.
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The merger process between three major institutions has begun with the aim of expanding services and strengthening competitiveness in the microfinance sector of Nepal.
Jeevan Bikash Laghubitta Bittiya Sanstha Limited, headquartered in Katahari, Morang, Unique Nepal Laghubitta based in Kohalpur, Banke, and Manushi Laghubitta based in Banepa, Kavrepalanchok, have reached an agreement for merger.
This agreement is not only an institutional merger but also a strategic step towards increasing competition, capital strengthening, and technology-friendly services in the microfinance sector. Such a merger has been taken forward in view of the recent capital pressure seen in microfinance institutions, strict regulatory standards, and the need for digital services.
The agreement has been signed by Jeevan Bikash Chairman Bikramraj Subedi, Chairman of Unique Nepal Shiva Bahadur Chaudhary, and Director of Manushi Laghubitta. After the merger, the name of the organization will remain 'Jeevan Bikash Laghubitta Bittiya Sanstha Limited', and the central office will be in Katahari, Morang.
There are plans to convert the central offices of Unique Nepal and Manushi Microfinance into regional offices, which is expected to further strengthen service access at the local level. The current CEO Sanjay Kumar Mandal will continue as the Chief Executive Officer.
The combined capital base of the three organizations is expected to expand significantly. Currently, Jeevan Bikash has a paid-up capital of over Rs 1.75 billion, while Unique Nepal and Manushi have around Rs 150 million and 110 million, respectively. After the merger, the organizations are expected to be able to invest in service expansion, risk management, and innovative technology with a larger financial base.
This merger is also considered important in terms of the service recipient base. Jeevan Bikash is currently serving more than 315,000 members in 31 districts, while Unique Nepal and Manushi have covered more than 80,000 and 34,000 service recipients, respectively. After the merger, it will be possible to jointly provide services with expanded access in many districts of the country.
A 6-member joint committee has been formed to take the merger process forward, which will coordinate the entire integration process. The coordinator of the committee is Prakash Kumar Shrestha, while the other members are Ashok Sitaula, Puran Prasad Chaudhary, Santaram Tharu, Navina Dhakhwa Shakya and Tara Kumar Rijal. Damodar Regmi has been given the responsibility of member secretary.
The organizations have set a goal to complete the merger process by mid-Ashar 2083 and start integrated business. This integration is seen as the beginning of a new competitive model in the microfinance sector through a combination of size, capacity and technology.
