Prime Commercial Bank scores gold in accessing rural corners through Om Development Bank’s branch network; MOU signed to acquire national level development bank

Prime Commercial Bank has signed a memorandum of understanding with Pokhara based Om Development Bank under which the commercial bank will acquire the later. The agreement was signed on Bhadra 3, 2075 by chairman of Prime Commercial Bank Mr. Udaya Mohan Shrestha and chairman of Om Development Bank Mr. Sushil Kumar Gosali. The commercial bank has expected to be benefited from the extensive rural network of the development bank as the newly formed entity will have 116 branches.

The share swap ratio will now be fixed after the Due Diligence Audit (DDA) of both the BFIs as the MOU is silent about that issue. The newly formed entity will have more than Rs 100  arba of deposit collection figure and the credit disbursement figure makes upto more than Rs 89 arba mark if the data of fourth quarter of previous FY is to be considered.