Prabhu Bank Limited and Century Commercial Bank are planning to merge.

An initial Memorandum of Understanding was signed in the presence of both banks’ directors at a meeting of their joint merger committees. The two banks have agreed on a 1:1 share swap ratio.

According to the initial agreement, Prabhu Bank will have four members on the seven-member board of directors, while Century Commercial Bank will have three.

Ashok Sherchan, the current CEO of Prabhu Bank, will remain in his position.

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

Century Bank‘s current paid-up capital is Rs 9.55 billion, while Prabhu’s paid-up capital is Rs 12.07 billion.

Prabhu Bank Limited’s total paid-up capital will be Rs 21.62 billion following the integrated transaction.