Kist Bank and Prabhu Bikas Bank have formally decided to undergo merger and become Prabhu Bank.
“The merged financial entity will be named Prabhu Bank,” said coordinator of the merger committee of Prabhu Bikas Bank Rameshwor Sapkota and Kist Bank’s Bishnu Gopal Shrestha after signing a Memorandum of Understanding (MoU) for merger at a program here today.
They are the board members of their respective financial institutions.
They have also agreed that Devi Prakash Bhattachan and Kumar Lamsal will be the chairman and chief executive of Prabhu Bank.
The merger will help consolidate the capital and other strengths of the two financial institutions.
It will be win-win situation for both of the financial institutions as Kist Bank has bee dogged with controversy following the resignation of earlier chief executive Kamal Gyawali in a loan scam.
Later, another chief executive BN Gharti and other bank officials were also arrested by Central Investigation Bureau of Nepal Police on banking offense.
The proposed Prabhu Bank will have a total paid-up of Rs 2.80 billion after merger.
Earlier, Kist Bank had signed memorandum of understanding with Vibor Bikas Bank last March to undergo merger. But the process ended without much result.
The current Prabhu Bikas Bank has been formed after the merger of Prabhu Finance Company, Sambriddhi Bikas Bank and Bhaivav Finance Company on July 14 last year.