PRABHU BANK JOURNEY FROM FINANCE TO COMMERCIAL BANK
Wed, Jul 15, 2015 12:00 AM on Others,
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Prabhu Bank Limited (PRVU), one of the leading commercial Bank of Nepal, had started its journey as a finance company. It grew up from a finance company with a paid up capital of Rs 54.89 crore as of 3rd quarter of 2069/70 FY to a commercial bank with a paid up capital of Rs 3.20 arba of 3rd quarter of current FY. Prabhu Bank is moving aggressive in terms of merger, acquisition and increment of paid up capital.
The paid up capital of Prabhu will reach to Rs 5.92 arab after the issuance of 20% right share and after the finalization of the ongoing acquisition of Grand Bank and Nepal Development Bank.
From Prabhu Finance to Prabhu Bikas Bank
The paid up capital of Prabhu Finance was Rs 54.89 crore as per its third quarter report of 2069/70 fiscal year. On Asad 30, 2070 Prabhu Finance merged with Dhading based Sambridhi Bikas Bank and Kathmandu based Baibhava Finance Limited and upgraded toPrabhu Bikas Bank Limited.
The swap ratio of Prabhu Finance: Sambridhi Bikas Bank: Baibhava Finance was fixed at 114.67: 75: 57 respectively. After the merger, the paid up capital of Prabhu Bikas Bank reached to Rs 76.59 crore.
The shareholders holding 100 units of Prabhu Finance shares got 14.67 shares in premium of PrabhuBikas Bank.
Paid-up capital details |
Total Paid-up Capital |
Swap Ratio
|
Prabhu Finance Paid up capital |
Rs 54.89 crore |
114.67 |
SamridhiBikas Bank Paid up Capital |
+ Rs 7 crore |
75 |
BaibhavBikas Bank Paid up Capital |
+ Rs 14.7 core |
57 |
Total paid up capital of PrabhuBikas Bank |
= Rs 76.59 crore |
From PrabhuBikas Bank to Prabhu Bank
On 30th Bhadra, 2071 Prabhu Bikas Bank elevated to the status of commercial bank after merging with Kist Bank Limited, Gaurishankar Development Bank Limited and Zenith Finance Limited.
The swap ratio of PrabhuBikas Bank: Kist Bank: Gaurishankar Development Bank: Zenith Finance was at 107.31: 97.31:107.31:92.31. The shareholders holding 100 shares of Prabhu Bikas Bank got 7.31 shares in premium
The paid up capital of Prabhu Bank Limited (PRVU) reached to Rs 3.20 arba after the merger.
Paid-up capital Details |
Total Paid-up capital |
Swap Ratio
|
Paid up capital of PrabhuBikas Bank |
Rs 76.59 crore |
107.31 |
Paid up capital of Kist Bank Ltd. |
+ Rs 194.62 crores |
97.31 |
Paid up capital of Gaurishankar Development Bank |
+ Rs 21.19 crore |
107.31 |
Paid up capital of Zenith Finance |
+ Rs23.10 crore |
92.31 |
Total Paid up capital of Prabhu Bank Limited |
= Rs3.20 arba |
Neither Prabhu Bikas Bank nor Prabhu Bank has distributed any dividend to its shareholders in last two fiscal years i.e. 2069/70 and 2070/71. Lastly, Prabhu Finance had distributed 17% bonus shares from the profit of 2068/69 FY to its shareholders.
Prabhu Bank has posted a net profit of Rs 69.44 crore in third quarter of the current fiscal year. The company reserve figure stands Rs 25 crore plus during the same period. There is a decent chance that the bank may pay out dividend this time to its shareholders from the profit of this fiscal year.
The bank’s non-performing loan (NPL) has gone down from 23.72% in the third quarter of the last fiscal to 10.78% this year.
Prabhu Bank (PRVU) acquiring Grand Bank Limited (GRAND) is the first ever acquisition of a commercial bank by another in Nepal. Special General Meeting (SGM) of Prabhu Bank Limited (PRVU) going to be held on 7th Shrawan, 2072 will be approving its acquisition of Grand Bank Limited.
Also, Prabhu is in last phase of acquisition of an ailing Nepal Development Bank.
For other details read:
Why Prabhu Bank is one of the best buy at the current market scenario?
