Nepal Rastra Bank (NRB) has given final approval for the merger of Prime Commercial Bank Limited (PCBL) and Kailash Bikas Bank Limited (KBBL).
The BOD meeting of the NRB held last week provided final approval to the banks to go for merger. The banks had applied for the final approval more than a month ago, as per the officials at NRB.
The two banks agreed for merger on Asadh 20, 2076. The Letter of Intent (LoI) was provided by the NRB during the second week of Ashwin. Subsequently, the final Memorandum of Understanding (MoU) was signed by the banks on Poush 3, 2076.
As per the officials at PCBL, the joint operation of the merged entity will begin within two week of receiving the final approval letter from NRB.
After the merger, the paid up capital of the merged entity will stand at Rs.13.95 Arba with Rs.19 Arba as capital fund. The deposit and loan portfolio will stand at Rs.1.28 Kharba and Rs.1.15 Kharba respectively. The merged entity will operate in the nation through a network of 200 branches.