Prime Bank in Discussion with Dozen BFIs for Merger/Acquisition

Jun 10, 2019 Merolagani

The 11th  AGM of Prime Commercial Bank (PCBL) concluded on June 9 endorsed a proposal of raising its authorized capital to Rs 22 billion from existing 10 billion.

The paid-up capital of the bank that endorsed 16 percent bonus share proposal through the AGM has reached Rs 9.31 billion.

In a bid to meet the target capital, the bank has signed acquisition agreement with two financial institutions within days and is in discussion with a dozen of institutions.

Prime Bank has made an acquisition agreement with Kankai Bikas Bank and Lalitpur Finance in the last week.

Previously, Prime Commercial Bank was in acquisition process with Om Development Bank, however, the process broke in the mid-day. Following which, Nepal Rastra Bank (NRB) directed the bank to find a suitable partner for acquisition or face penalty.

As per a source in the bank, the bank is in discussion with half of dozen development bank and finance companies along with few commercial banks for merger/acquisition.

The source tells merolagani that the bank is in discussion with a commercial bank along with development bank including Kanchan Development Bank, Kailash Bikas bank, Jyoti Bikas Bank, Gandaki Bikas Bank, Lumbini Bikas Bank, Sindhu Bikas Bank, Community Development Bank and finance companies including Manjushree Finance, Central Finance, Srijana Finance, Best Finance and Reliance Finance.

 

 


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