Prabhu Bank Limited (PRVU) has decided to endorse the preliminary acquisition agreement of Capital Merchant Banking & Finance Limited. The 222nd meeting of the board of directors held on Bhadra 17 decided on the matter.
Nepal Rastra Bank had declared Battisputali - based Capital Merchant Banking and Finance as a troubled entity. The central bank in August 2011 had taken prompt corrective action against the category ´C´ financial institution and asked it to immediately bury holes seen in its balance sheet. During inspections, NRB had also found that most of the deposits of the company were embezzled, while the quality of most of the credit was inferior and recovery of these loans seemed almost impossible.
As of writing, PRVU has an LTP of Rs. 440.