NEPSE witnessed a sudden upswing in the transaction on the shares of Nepal Bangladesh Bank on Sunday. NB Bank’s shares that were trading at the price range of Rs 295 to Rs 305 till last week, traded at Rs 331 per unit on Sunday. Around 100,000 unit shares of NB Bank were traded and by the time trading closed, there still was a demand for around 50,000 unit shares.
The shares of the bank had lost favor with investors after one of the promoters of NB Bank, NB Group and associates, defaulted on the loans taken out by pledging the shares at different banks, including in the NB Bank itself.
A much sought relief for NB Bank came when Bangladesh-based IFIC Bank agreed to buy shares of the bank to increase its stake from existing 9.18 percent to 51 percent. NB Bank that was set to suffer huge losses had pinned all its hope of recovery on the money sent by IFIC.
After reaching a deal to buy the shares, IFIC has deferred the deadline to send the money twice. Earlier, Nepal Bangladesh Bank had written to Bangladesh-based IFIC Bank to submit the amount meant for the purchase of promoters’ shares by 21 August. As the deadline has expired, IFIC might be in the process of sending the amount soon.
The only plausible reason for the sudden uptick in the sales of NB Bank shares could be that the IFIC might be sending the money soon and the few people with access to that inside information are taking advantage.
A staff with NB Bank confirmed that the first chunk of money promised by IFIC would arrive in a day or two. IFIC had earlier said that it would first purchase 38,03,434 unit shares owned by NB Group and associates at Rs 260 per share. Also, IFIC has said it will send money for the remaining promoter shares numbering 20 million units owned by NB and associates within next 20 days.
The Bangladesh-based IFIC also plans to buy Bank of Asia’s stake in NB Bank and other shares to increase its stake to 51%.
Despite plunge in profit in the end quarter of FY 2069/70, the NB Bank staff said there is a strong likelihood that the bank would pay a dividend of above 5 percent at the end of fiscal 2070/71.
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