After getting rescued by the central bank following liquidity crunch, Vibor Bikas Bank has done the right thing by merging with Bhajuratna Finance Savings, a category ´C´ financial institution. With a competent and knowledgeable CEO, Ajay Ghimire, I think Vibor will emerge strong after this merger. Before that happens it still has to bring its balance sheet in order though and decrease the proportion of risky loans/credit in its loan portfolio. More BFIs should aim for merger by following Vibor’s positive move. Else, without a consolidation of BFIs in the financial sector, a deeper financial crisis in inevitable.
Congratulations to Vibor and Bhajuratna!