The harsh economic atmosphere for Malawi has left no option for Opportunity Bank of Malawi (OBM) but to merger with First Merchant Bank (FMB).
Announcing the development on Tuesday in Lilongwe, OBM chairperson Frazer Hume said the bank had challenges in sustaining its operations due to lack of more investing activities.
FMB chairperson Hitesh Anadkat said the acquisition will help the bank to reach more customers in Malawi since the business segment that FMB targeted is to grow with the consumer segment that OBM opted for its operations.
The FMB chairperson further disclosed that the merger will see some employees being chopped off, as some are to voluntarily resign while others will be laid off
The merger however awaits approval of Reserve Bank of Malawi (RBM).
OBM earlier disclosed plans to merge with New Finance Bank (NFB) but talks on the acquisition were reported to have hit the wall.
