Prabhu Bank is acquiring Century Commercial Bank (CCB), with both the entities signing a memorandum of understanding on Sunday.
According to the agreement, the new bank to be formed will be named Prabhu Bank. Of seven board members to be formed after the acquisition, four will be from Prabhu Bank while the rest of the three members will be fromCentury Commercial Bank. These banks have agreed to maintain the swap ratio at 1:1.
Ashok Sherchan, chief executive officer of Prabhu Bank will remain in the position of the new bank. Century Commercial Bank Chairman Rajesh Shrestha has been agreed to lead the board of the unified Prabhu Bank. Similarly, CCB Deputy CEO Manoj Neupane will remain in the same position in the new entity.
Prabhu Bank earned a profit of Rs 2.60 billion in the last fiscal year while CCB is yet to make public its financial status for the review year. After the acquisition, the unified entity will have a paid-up capital of Rs 31.71 billion.
