Prabhu gets green signal to acquire Grand

Kathmandu, June-17 A board meeting of the central bank held yesterday gave permission to Prabhu Bank for acquisition of Grand Bank.

These financial institutions need to complete all formalities of acquisition and approach the central bank for starting operations as a new institution within 6 months.

Prabhu has declared that the formalities will be clear within 3 months.                               

After the acquisition the paid up capital of Prabhu Bank will reach to Rs 5.20 arba. The deposits will reach to Rs 46.93 arba whereas loans and advances will reach to Rs 39.40 arba.

Prabhu has agreed to buy Grand Bank’s total 2 crore shares at Rs 60 per share.

Prabhu has been pursuing acquisition after it succeeded to recover the bad loans disbursed by Kist Bank after merger. Prabhu has come a long way from being a finance company to a development bank and finally a commercial bank.

This would be the first acquisition of the country to acquire a commercial bank by the next. After the acquisition Prabhu bank's branch will extend to 134.