June 6, 2019 | Investopaper
Prime Commerical Bank has informed Nepse about the merger and acquisition with Kankai Bikas Bank today. Both companies have reached on an agreement and they have signed on a memorandum of understanding (MOU) on Jestha 22, 2076 to forward the acquisition process.
The company was previously set to acquire Om Development Bank but after the acquisition process failed, both the companies were directed by Nepal Rastra Bank to find new partners for the mergers and acquisition. Om Development Bank has already signed MOU with NMB for the merger.
The paid-up capital of Kankai stands at Rs.51.50 Crore with a reserve of Rs.8.66 Crore. It reported a strong increase in net profit this third quarter with a rise of 46 percent. On the other hand, Prime Commercial paid-up capital stands at Rs 8.03 Arba with Rs 4.69 Arba in its reserve. It also reported more than 30 percent growth in its net profit this quarter.
Kankai Bikas Bank has a stronghold in rural areas of Nepal so the merger is expected to bring synergy through joint operations.
Also, PCBL has reached an agreement to acquire Kailash Bikas Bank and Lalitpur finance.
After acquiring three companies, it will operate through 189 branches around the nation.