Microfinance sector sees historic big merger: Jeevan Bikas, Unique Nepal and Manushi sign deal

KATHMANDU: Nepal’s microfinance sector is set for its largest consolidation yet, as Jeevan Bikas Laghubitta Bittiya Sanstha, Unique Nepal Laghubitta, and Manushi Laghubitta have signed a merger agreement to form a significantly larger and more capitalized entity.

The memorandum of understanding (MoU) was signed by Bikram Raj Subedi, chairman of Jeevan Bikas Laghubitta; Shiv Bahadur Chaudhary, chairman of Unique Nepal Laghubitta; and Veena Shrestha, director of Manushi Laghubitta. The deal is being positioned as the largest merger in Nepal’s microfinance industry to date.

Strategic Consolidation to Strengthen Capital Base

According to Sanjay Kumar Mandal, Chief Executive Officer of Jeevan Bikas Laghubitta, the merger aims to strengthen the capital base of the combined institution, expand technology-driven financial services, and enhance public trust in the microfinance sector.

Post-merger, the unified entity will operate under the name Jeevan Bikas Laghubitta Bittiya Sanstha Limited, with its central office remaining in Katahari Rural Municipality-2, Morang, where Jeevan Bikas is currently headquartered.

The existing head offices of Unique Nepal in Kohalpur, Banke, and Manushi in Banepa, Kavrepalanchok, will be converted into provincial offices, ensuring continued regional presence and operational efficiency.

Leadership and Human Resource Integration

Following the merger, Sanjay Kumar Mandal will continue as CEO of the merged institution. The agreement also includes provisions for the integration of employees from all three institutions, signaling a comprehensive organizational consolidation.

Combined Capital and Operational Reach

Currently, Jeevan Bikas Laghubitta holds a paid-up capital of NPR 1.75 billion, while Unique Nepal and Manushi have NPR 148.5 million and NPR 109.3 million respectively. The merger will significantly boost the combined capital base, improving regulatory compliance and lending capacity.

In terms of outreach:

• Jeevan Bikas operates 160 branch offices across Koshi, Madhesh, and Bagmati provinces, serving over 315,000 members
• Unique Nepal serves more than 80,000 clients across 10 districts
• Manushi provides services to over 34,700 clients in 14 districts

The merged entity is expected to have a substantially expanded footprint, enhancing financial inclusion and last-mile service delivery across Nepal.

Merger Committee Formed, Timeline Set

A six-member joint merger committee has been formed to oversee the integration process. Prakash Kumar Shrestha, a director of Jeevan Bikas Laghubitta, has been appointed as coordinator.

Other members include Ashok Sitoula, Puran Prasad Chaudhary, Santaram Tharu, Naveena Dhakhwa Shakya, and Tarakumar Rijal.

Damodar Regmi, Deputy CEO of Jeevan Bikas Laghubitta, has been designated as member secretary of the committee.

The institutions have targeted completion of the merger process by mid-July 2026 (end of Ashar 2083), after which integrated operations will formally commence.

Sectoral Implications

This landmark merger reflects a growing trend of consolidation in Nepal’s microfinance sector, driven by regulatory pressure, capital adequacy requirements, and the need for technological transformation.

Analysts suggest that larger, consolidated entities will be better positioned to manage risks, reduce operational costs, and expand digital financial services—particularly in rural and underserved markets—while also strengthening resilience amid evolving financial sector dynamics.