Special General Meeting (SGM) of Prabhu Bank Limited (PRVU) held on 7th Shrawan, 2072 had approved the acquisition of Grand Bank Limited. Prabhu Bank Limited (PRVU) acquiring Grand Bank Limited (GRAND) has been the first ever acquisition of a commercial bank by another in Nepal.
Ashok Sherchan, CEO of Prabhu Bank said, “ Prabhu bank has applied for the final approval in NRB and most probably NRB will be providing a final nod for joint operation within this week.”
Upon the NRB endorsement, the shareholders holding 100 units of Prabhu Bank shares will get 21.45 shares in premium, and the shareholders holding 100 units of Grand Bank will get 65.58 shares of Prabhu Bank, for that the separate book closure date will be published.
“Integrated operation of both the banks will commence by the end of Bhadra,”added Sherchan.
Prabhu Bank’s will also be issuing 20 percent right shares to its shareholders within the a month.
“The right share has already received the ICRA rating and a separate book closure date will be published for it,” Sherchan said.
Nabil Investment Banking Limited has been assigned as the issue manager for the right issue.
Prabhu Bank has posted a net profit of Rs 1.03 arba in the fourth quarter of the last fiscal year. The company reserve figure stands Rs 47.69 crore plus during the same period. The bank will pay out stock dividend this time to its shareholders from the profit of the last fiscal year. The bank will not be providing any cash dividend as its NPL is at 7.39 percent.
However, any dividend will be claimed only on Rs 3.20 arba paid up capital.
The paid up capital of Prabhu will reach to Rs 5.92 arab after the issuance of 20% right share and after the finalization of the ongoing acquisition of Grand Bank and Nepal Development Bank.
It seems like Prabhu Bank will easily meet the paid up capital requirement of 8 arba within fiscal year 2074. -SSN
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