Prabhu Bank to acquire Century Bank

1st Aug, 2022 | Tourism Mail Crew

KATHMANDU, Aug 01: Prabhu Bank is going to acquire Century Commercial Bank. An agreement has been reached on the merger of the two banks on Sunday. Even if Century is merged, the name of the bank will remain 'Prabhu'.

The two banks have signed a memorandum of understanding for the merger. The two banks have agreed to maintain a 1:1 swap ratio. A director of Prabhu Bank said that the final decision will be made after a detailed assessment of assets and liabilities.

The Board of Directors will consist of 4 members from Prabhu and 3 members from Century Commercial Bank. Ashok Sherchan, CEO of Prabhu Bank, will be the Chief Executive Officer (CEO). Century's Manoj Neupane will become Deputy CEO.

According to sources, the goal is to start an integrated business within January.

After the acquisition of Century Commercial Bank, Prabhu Bank's capital fund will reach around 31 billion 71 crore rupees. The paid up capital will be more than 22 billion 260 million. According to the raw financial statement of the last financial year, Prabhu Bank has earned a profit of more than 2 billion 60 crores. The details of Century are yet to be made public.

Prabhu Bank, which could not invest in loans due to lack of primary capital, is going to acquire Sanchuri strategically. After the merger of Century, the problem of Prabhu's primary capital can be eased.