Prabhu Bank Ltd -- a merged entity of Kist Bank, Prabhu Bikas Bank, Gauri Shankar Development Bank and Zenith Finance -- has started integrated operation five months after the signing of Memory of Understanding (MoU) between Kist Bank and Prabhu Development Bank.
Gauri Shankar and Zenith Finance had later joined the amalgamation process initiated by these two institutions.
Nepal Rastra Bank (NRB) Governor Yuba Raj Khatiwada inaugurated the integrated operation of the bank amid a ceremony held at the erstwhile Kist Bank´s headquarters in Babarmahal on Monday.
The merged entity is named after Prabhu Bikas Bank. It, however, retains Kist Bank´s logo.NRB governor Yubaraj Khatiwada (center left) at the inauguration of the newly-merged Prabhu Bank Ltd in Kathmandu on Monday. (Pratik Rayamajhi/Republica)
Devi Prakash Bhattachan is the chairman of Prabhu Bank, while Kumar Lamsal is the CEO. Bhattachan was the chairman of Prabhu Bikas Bank, while Lamsal was the CEO of Kist Bank.
Speaking at the inaugural ceremony, NRB Governor Khatiwada said that the merger was not the remedy to all the ills in the banking sector. “It´s not like that big banks do not fail. We should make sure that mishaps in the banking sector are averted. Merger is one of our attempts to avert such crisis,” Khatiwada said. “Merger, however, is not the panacea.”
Khatiwada said that merger is also an opportunity for banks to correct their mistakes. “While giving you the go-ahead for merger, we are putting you inside rehabilitation house with an expectation that the bank will recover within a certain period of time.” He also urged the officials of the banks to fully utilize the time that the central regulatory bank has provided them for betterment of the bank. “During that time, the bank should make itself healthier by making its balance sheet stronger and promoting good governance,” added Khatiwada.
Prabhu Bank´s CEO Kumar Lamsal said that they plan to make the bank a strong bank financially by promoting good governance. Similarly, bank´s chairman Bhattachan said that the new bank would finance in big infrastructure projects by forming consortium with other banks. “After our balance sheet becomes stronger, we will also begin the process to invite foreign banks as our strategic partner,” he added.
The merging parties had endorsed the merger proposal from their respective annual general meetings on June 14. NRB had given the final approval for merger on August 6.
Kist Bank was in the red in 2013/14 due to heavy bad debts resulting from the loan scams allegedly perpetrated by its former CEOs Kamal Gyawali and BN Gharti Magar. The 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. Gaurishankar Development Bank was a regional development bank while Zenith Finance was the national level finance company.
Prabhu Bank has paid-up capital of Rs 3.21 billion. It has mobilized total deposits of Rs 32.39 billion, while issued Rs 23.78 in loans. Issuing a statement, the bank said it has 112 branch offices, 108 ATM machines and around 600,000 clients. The bank has 1,135 staff members.
source: republica,15 sept 2014
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Gauri Shankar and Zenith Finance had later joined the amalgamation process initiated by these two institutions.
Nepal Rastra Bank (NRB) Governor Yuba Raj Khatiwada inaugurated the integrated operation of the bank amid a ceremony held at the erstwhile Kist Bank´s headquarters in Babarmahal on Monday.
The merged entity is named after Prabhu Bikas Bank. It, however, retains Kist Bank´s logo.NRB governor Yubaraj Khatiwada (center left) at the inauguration of the newly-merged Prabhu Bank Ltd in Kathmandu on Monday. (Pratik Rayamajhi/Republica)
Devi Prakash Bhattachan is the chairman of Prabhu Bank, while Kumar Lamsal is the CEO. Bhattachan was the chairman of Prabhu Bikas Bank, while Lamsal was the CEO of Kist Bank.
Speaking at the inaugural ceremony, NRB Governor Khatiwada said that the merger was not the remedy to all the ills in the banking sector. “It´s not like that big banks do not fail. We should make sure that mishaps in the banking sector are averted. Merger is one of our attempts to avert such crisis,” Khatiwada said. “Merger, however, is not the panacea.”
Khatiwada said that merger is also an opportunity for banks to correct their mistakes. “While giving you the go-ahead for merger, we are putting you inside rehabilitation house with an expectation that the bank will recover within a certain period of time.” He also urged the officials of the banks to fully utilize the time that the central regulatory bank has provided them for betterment of the bank. “During that time, the bank should make itself healthier by making its balance sheet stronger and promoting good governance,” added Khatiwada.
Prabhu Bank´s CEO Kumar Lamsal said that they plan to make the bank a strong bank financially by promoting good governance. Similarly, bank´s chairman Bhattachan said that the new bank would finance in big infrastructure projects by forming consortium with other banks. “After our balance sheet becomes stronger, we will also begin the process to invite foreign banks as our strategic partner,” he added.
The merging parties had endorsed the merger proposal from their respective annual general meetings on June 14. NRB had given the final approval for merger on August 6.
Kist Bank was in the red in 2013/14 due to heavy bad debts resulting from the loan scams allegedly perpetrated by its former CEOs Kamal Gyawali and BN Gharti Magar. The 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. Gaurishankar Development Bank was a regional development bank while Zenith Finance was the national level finance company.
Prabhu Bank has paid-up capital of Rs 3.21 billion. It has mobilized total deposits of Rs 32.39 billion, while issued Rs 23.78 in loans. Issuing a statement, the bank said it has 112 branch offices, 108 ATM machines and around 600,000 clients. The bank has 1,135 staff members.
source: republica,15 sept 2014
LINK
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