Uday Mohan Shrestha, Chairman of Prime Commercial Bank and Sushil Kumar Goshali, Chairman of Om Development signed the agreement amid a function on August 19.
The merged entity will have a paid-up capital of Rs 10 billion, deposit collection of above Rs 100 billion and loan extension of Rs 89 billion. As per the banks, the swap ratio will be decided on the basis of DDA report.
