After Mahakali Bikash Bank, Kasthamandap Dev. Bank signs acquisition pact with Paschimanchal Finance

Kasthamandap Development Bank Limited (KDBL) has signed an agreement to acquire Paschimanchal Finance Company Limited (PFC).Jagannath Gyawali, Chairman of Kasthamandap Development Bank and Gopal Bahadur Pokhrel, Chairman of Paschimanchal Finance Limited signed on the agreement. The agreement has been done between the development banks to raise the paid up capital Rs 2.50 arba as per NRB direction. After acquisition, Kasthamandap Development Bank will have access to Western  and Mid Western part of the country Trading of Paschimanchal Finance has been suspended from today (Jestha 25, 2073) in Nepal stock exchange following the acquisition process. On Jestha 17, 2073, Kasthamandap Development Bank had signed memorandum of understanding (MOU) to acquire Mahakali Bikas Bank Limited. Kasthamandap Development Bank 8^th Annual General Meeting had approved 4:1 (25%) right share to its existing shareholders. The bank will soon be issuing 4:1 right share to its existing shareholders. After issuance of 25 percent right share, paid up capital will reach Rs 84.97 crore At present, KDBL has paid up capital of Rs 67.98 crore. The bank has earned net profit of Rs 19.32 crore in third quarter of 72/73 FY. The development bank aims to raise its paid up capital to Rs 1.80 arba by the end of Poush. Likewise, PFC has paid up capital of Rs 30.35 crore. The bank has earned net profit of Rs 1.94 crore in third quarter of the fiscal year 2072/73. At present the development bank is rendering service from 19 branches and 7 ATM counters . After the acquisition, the total number of branches  will reach to 35 including 7 branches of Mahakali Bikas Bank and 9 branches of Paschimanchal Finance Limited.