NRB gives final nod for merger of Kist, Prabhu, Gauri Shankar and Zenith

ShareSansar, August 1:

Nepal Rastra Bank has given the final nod for the merger of Kist Bank Limited and three BFIs, including Prabhu Bikash Bank Limited.

The merger of four BFIs was formally endorsed by their respective special general meeting in June, which also ratified the Due Diligence Audit report and the MoUs signed between Kist, Prabhu, Gauri Shankar Development Bank and Zenith Finance Limited, as well as the swap ratio for the merger.

The merged entity will now be named Prabhu Bank Limited.

The swap ratio as per the DDA is 97.31 for Kist, 107.31 for Prabhu, 107.31 for Gauri Shankar, and 92.31 for Zenith.

Back in April, the crisis-ridden Kist had sealed the merger deals with Prabhu and the rest. The BFIs had reached an understanding to finalize the merger within this fiscal year.

To take the process ahead, they have already established a merger committee.

According to Ram Pandey, coordinator of the merger committee, now that they have received the final nod from the central bank, they will soon finalize the date for the integrated business of the merged entity.

Their share trading has also been halted at Nepal Stock Exchange Limited (NEPSE) for the merger.

Once the merger takes place, the bank will have more than hundred branches and human resource of more than one thousand.

Following the merger, Prabhu Bank’s capital base will stand over Rs 3.20 arba.