Three Microfinance Institutions Sign Merger Agreement to Strengthen Capital Base

Biratnagar. A merger agreement has been signed between Jeevan Bikas Laghubitta Bittiya Sanstha Limited, headquartered in Katahari, Morang; Unique Nepal Laghubitta Bittiya Sanstha Limited, headquartered in Kohalpur, Banke; and Manushi Laghubitta Bittiya Sanstha Limited, headquartered in Banepa, Kavrepalanchok.

The Memorandum of Understanding (MoU) for the merger was signed by Jeevan Bikas Chairman Bikramraj Subedi, Unique Nepal Chairman Shivabahadur Chaudhary, and Manushi Laghubitta Director Bina Shrestha.

Sanjay Kumar Mandal, CEO of Jeevan Bikas Laghubitta, stated that the merger aims to strengthen the capital base of the microfinance institutions, provide modern technology-friendly financial services, and enhance public trust in the financial sector.

Following the merger, the institution will be named 'Jeevan Bikas Laghubitta Bittiya Sanstha Limited.' The central office will be located at the current headquarters of Jeevan Bikas in Katahari Rural Municipality-2, Morang.

The agreement stipulates that the central offices of Unique Nepal and Manushi Laghubitta will be converted into provincial offices.
Sanjay Kumar Mandal, CEO of Jeevan Bikas, will serve as the CEO of the merged entity. An agreement has also been reached to integrate the employees of all three institutions.

Currently, the paid-up capital of Jeevan Bikas stands at 1.75 billion 12 million 32 thousand rupees, Unique Nepal at 148.575 million rupees, and Manushi Laghubitta at 109.375 million rupees.

Jeevan Bikas provides microfinance services to over 315,000 members across 31 districts in Koshi, Madhesh, and Bagmati provinces through 160 branch offices. Unique Nepal serves over 80,000 members in 10 districts, while Manushi serves over 34,700 members in 14 districts.

A six-member joint merger committee has been formed to advance the process. Prakash Kumar Shrestha, a director at Jeevan Bikas, has been appointed as the coordinator of the committee. Members include Ashok Sitaula, Puran Prasad Chaudhary, Santaram Tharu, Nabina Dhakhwa Shakya, and Tara Kumar Rijal. Damodar Regmi, Deputy CEO of Jeevan Bikas, serves as the member secretary of the committee.

The institutions aim to complete the merger process and commence integrated operations by the end of Ashar, 2083.