First Business News Portal in English from Nepal
KATHMANDU: An agreement for the acquisition of Century Commercial Bank Limited (CCBL) by Prabhu Bank Limited (PRVU) has been completed on Sunday, Shrawan 15. The agreement was signed in the meeting of the joint merger committee of both banks.
Through the initial agreement, four members of the seven-member board of directors will be from Prabhu Bank. Three will remain from the current Century Bank. Prabhu Bank’s current CEO Ashok Sherchan will continue as the chief executive.
Prabhu Bank has offered a share swap ratio of 1:1 to Century due to its encouraging progress in key financial indicators recently.
Century Bank has started making good progress in terms of business growth lately, bad debt recovery, and regulatory compliance. The current paid-up capital of the bank is Rs 9.55 billion whereas the paid-up capital of Prabhu Bank is Rs 12.07 billion.
Once these banks start integrated transaction, the total paid-up capital of the new entity will be Rs 21.62 billion.
Ashok Serchan, the CEO of Prabhu Bank, will continue to be CEO of the new entity, as per the agreement.
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