Kist Bank and Prabhu Bikas Bank have formally decided to undergo merger.
Rameshwor Sapkota, coordinator of the merger committee of Prabhu Bikas Bank, and Bishnu Gopal Shrestha of Kist Bank signed a Memorandum of Understanding (MoU) for merger at a program here on Thursday.
Sapkota and Shrestha are also the board members of their respective banks.
Officials of the two banks have agreed to name the merged entity as ´Prabhu Bank Ltd´. It has also been agreed that Devi Prakash Bhattachan and Kumar Lamsal will be the chairman and CEO, respectively, of Prabhu Bank Ltd. While Bhattachan is the chairman of Prabhu Bikas Bank, Lamsal is the CEO of Kist Bank.
Ashok Sherchan, deputy CEO of KIST Bank, told Republica that the merger process has been initiated to consolidate the capital and other strengths of the two banks and to present the merged entity as one of the strong banks in the country´s banking sector. He said they agreed to name the merged entity Prabhu Bank Ltd because of the recent controversy surrounding Kist Bank.
Kist Bank was caught into controversy following the resignation of Kamal Gyawali in a loan scam. Later, another CEO BN Gharti and other bank officials were also arrested by Central Investigation Bureau of Nepal Police on banking offense.
“We are making necessary preparation to enable the merged entity to start operation by the end of the current fiscal year,” Sherchan said, adding that Prabhu Bank Ltd will have total paid-up of Rs 2.80 billion. It will have loan investment of Rs 22 billion and total deposits of Rs 30 billion.
Kist Bank had signed MoU to undergo merger with Vibor Bikas Bank in March last year. But the process had ended abruptly after seven months.
Prabhu Bikas Bank was formed through the merger of Prabhu Finance Company Ltd, Sambriddhi Bikas Bank and Bhaivav Finance Company on July 14 last year.
So far, a total of 43 BFIs have merged to become 18 institutions. Of those, two commercial banks -- NIC Bank and Bank of Asia -- have merged to become NIC Asia. Similarly, other two commercial banks -- Global IME Bank and Commerz and Trust Bank -- are scheduled to start operation as a merged entity from this month.
source: republica,4 april 2014
LINK
Rameshwor Sapkota, coordinator of the merger committee of Prabhu Bikas Bank, and Bishnu Gopal Shrestha of Kist Bank signed a Memorandum of Understanding (MoU) for merger at a program here on Thursday.
Sapkota and Shrestha are also the board members of their respective banks.
Officials of the two banks have agreed to name the merged entity as ´Prabhu Bank Ltd´. It has also been agreed that Devi Prakash Bhattachan and Kumar Lamsal will be the chairman and CEO, respectively, of Prabhu Bank Ltd. While Bhattachan is the chairman of Prabhu Bikas Bank, Lamsal is the CEO of Kist Bank.
Ashok Sherchan, deputy CEO of KIST Bank, told Republica that the merger process has been initiated to consolidate the capital and other strengths of the two banks and to present the merged entity as one of the strong banks in the country´s banking sector. He said they agreed to name the merged entity Prabhu Bank Ltd because of the recent controversy surrounding Kist Bank.
Kist Bank was caught into controversy following the resignation of Kamal Gyawali in a loan scam. Later, another CEO BN Gharti and other bank officials were also arrested by Central Investigation Bureau of Nepal Police on banking offense.
“We are making necessary preparation to enable the merged entity to start operation by the end of the current fiscal year,” Sherchan said, adding that Prabhu Bank Ltd will have total paid-up of Rs 2.80 billion. It will have loan investment of Rs 22 billion and total deposits of Rs 30 billion.
Kist Bank had signed MoU to undergo merger with Vibor Bikas Bank in March last year. But the process had ended abruptly after seven months.
Prabhu Bikas Bank was formed through the merger of Prabhu Finance Company Ltd, Sambriddhi Bikas Bank and Bhaivav Finance Company on July 14 last year.
So far, a total of 43 BFIs have merged to become 18 institutions. Of those, two commercial banks -- NIC Bank and Bank of Asia -- have merged to become NIC Asia. Similarly, other two commercial banks -- Global IME Bank and Commerz and Trust Bank -- are scheduled to start operation as a merged entity from this month.
source: republica,4 april 2014
LINK
Comments
Post a Comment