Prime Commercial signs acquisition deal with Biratlaxmi & Country Dev Bank; Trading of both Dev. banks suspended from today

Prime Commercial Bank Limited (PCBL) has signed an agreement to acquire Biratlaxmi Bikas Bank Limited (BLDBL) and Country Development Bank Limited (CNDBL). Amidst a program organized on Monday (Jestha 24, 2073), Shyam Bahadur Shrestha, BOD of Prime Commercial Bank , Madhav Prasad Koirala, Chairman of Biratlaxmi Bikas Bank and Indra Narayan Bhaila, Chairman of Country Development Bank signed  the agreement. Prime Commercial Bank Limited has decided to acquire the development banks so as to increase its paid up capital as per the requirement of Nepal Rastra Bank. Prime Commercial Bank Limited will be issuing 3:1 right share by the end of Ashad. The right share issue has been sent for approval at Securities Board of Nepal (SEBON).After issuance of 33.33 percent right share, paid up capital will reach Rs 4.93 arba PCBL has earned net profit of Rs.70.95 crore in the third quarter of the current fiscal year 2072/73.Its paid up capital remains at Rs 3.70 arba. BLDBL and CNDBL has paid up capital of Rs 42.53 crore and  Rs 35.69 crore respectively.Country Development Bank has earned net profit of Rs 4.83 crore in third quarter . Likewise  Biratlaxmi Bikas has earned a net profit of Rs 4.74 crore in third quarter of the FY 2072/73. Trading of Country Dev Bank and Biratlaxmi Bikas Bank has been suspended in Nepal Stock Exchange Limited (NEPSE)  from today following the acquisition process.