Kist Bank to become Prabhu Bank within this fiscal year

ShareSansar, 4th  April:

Finally, Prabhu Bikash Bank and Kist Bank Limited have reached an agreement for the merger process.

A memorandum of understanding, in this regard, was signed on Thursday by Chairman of Kist Bank Limited Bishnu Gopal Shrestha and Chairman of  Prabhu Development Bank Ltd Rameshwor Sapkota.

The banks have reached an understanding to finalize the merger within this fiscal year.

To take the process ahead, the two banks have already established a merger committee and are filing an application at Nepal Rastra Bank today to get the banking sector regulator’s nod to formally initiate the consolidation process.

In addition, both the banks’ share trading in Nepse will be halted from Sunday.

The bank officials from both the banks have tentatively agreed to determine the swap ratio for the merger on the basis of their respective third quarterly report, besides the DDA report to be prepared for the deal.

However, officials with the crisis-ridden Kist Bank will not confirm or rule out the news.

As per Mr. Ram Pandey, Director of Prabhu Bikash Bank, the joined entity after the merger process will be named as Prabhu Bank Limited.

With the completion of merger, the bank will have more than hundred branches and human resource of more than one thousand one hundred.