KATHMANDU: Prabhu Bank Limited and Century Commercial Bank are set to merge into one entity.

An initial MoU was signed in a meeting of the joint merger committee of both banks in the presence of directors of both banks. The share swap ratio of the two banks has been agreed as 1:1.

As per initial agreement, four members in the seven-member board of directors will be from Prabhu Bank and three from Century Commercial Bank.

Prabhu Bank’s incumbent CEO Ashok Sherchan would continue as the chief executive.

Manoj Neupane, the current CEO of Century Bank, will be the Deputy CEO of Prabhu Bank.

The current paid-up capital of Century Bank is Rs 9.55 billion whereas the paid-up capital of Prabhu is Rs 12.07 billion.

Following the integrated transaction, the total paid-up capital of Prabhu Bank Limited will be Rs 21.62 billion.