Prabhu Bank gets NRB nod to acquire Grand Bank; Swap ratio likely to be 100:67

ShareSansar, June 17:

Nepal Rastra Bank (NRB) on Tuesday (yesterday) gave its final nod to Prabhu Bank Limited (PRVU) for acquisition of Grand Bank Limited.

A board meeting of the central bank held on Tuesday (yesterday) gave letter of intent  to Prabhu Bank for the acquisition of Grand Bank Limited.

Going by the existing rule, these financial institutions would need to complete all formalities of acquisition and approach the central bank for starting operations as a new institution within 6 months of time period.

Ashok Serchan, CEO of Prabhu Bank said, “All the formalities of acquisition process will be completed within 3 months of the principle agreement”.

After the acquisition the paid up capital of Prabhu Bank will reach to Rs 5.20 arba. The deposits will reach to Rs 46.93 arba whereas loans and advances will reach to Rs 39.40 arba.

Prabhu bank likely to buy Grand Bank’s total 2 crore shares at Rs 67 per share.

Grand Bank had faced regulatory action from Nepal Rastra Bank on account of its soaring bad loans.

Prabhu Finance launches largest merger in banking sector

Prabhu has been pursuing acquisition aggressively after it succeeded to recoup the bad loans disbursed by Kist Bank following their merger. After merging with Kist, Prabhu has recovered more than 1 crore in bad loans.  

Prabhu has come a long way from being a finance company to a development bank and finally a commercial bank.

“Merger and acquisition is one of our core strategies”