Eight banks likely to issue bonus shares to meet NRB rule

Nepal Rastra Bank’s new monetary policy has given commercial banks one more year to meet the minimum paid up capital requirement of Rs 2 arba. The monetary policy leaves eight commercial banks out of 31 with two choices: either issue bonus shares or opt for merger.

Until now, the NRB had allowed the commercial banks’ to include 20% of their reserve with the paid up amount while showing their minimum capital base.

But the new monetary policy has done away with that leeway and asked the banks to maintain a minimum paid up of Rs 2 arba by Asar 2071.

 Rs. In ‘000’

BANKS	Paid Up	Reserve	Bonus Expectation (%)
NCC	1470000	695409	36
Lumbini	1601600	548618	25
Kumari	1603800	941520	25
Siddhartha	1619244	844340	24
BOK	1684397	1444310	19
Laxmi	1694081	887793	18
Everest	1601126	3450511	25
Standard Chartered	1853900	3118573	8

 src : sharesansar