Shangrila Development Bank to endorse 4:1 right shares

Shangrila Development Bank Ltd. has announced its first Special General Meeting following the  merging with Bagheshwori Development Bank later this month on September 26.

The special general meeting to be held at the central office of the Class ‘B’ bank at Baluwatar, Kathmandu will scheduled to endorse the completion of the merger, and appoint four directors from among the promoters and two public directors.

The general meeting will also authorize the new BoD to pursue further merger/ acquisition with other BFIs, according to a notice published by the development bank today.

It will also pass a proposal to soar up the paid-up capital from the existing Rs 64 crore to Rs 80 crore. The special meet is also expected to endorse 4:1 right shares the BoD has just pledged to the shareholders.

Following the merger, Shangri-la had reported 92.7 percent net profit rise in the last fiscal year 2070/71.

Shangri-La’s net profit has risen to Rs 15.82 crore in the last fiscal year, up from Rs 8.21 crore in the previous fiscal year 2069/70.

The net interest income of the development bank has almost tripled to Rs 33.34 crore by the end of the fourth quarter from Rs 11.43 crore.

Nonetheless, it may be noted that the figure for the fourth quarter of the last fiscal year is unaudited one and that of the merged entity of Shangri-La and Bageshwori Development Bank Limited, while the figure of the corresponding quarter is the audited one and that of only Bageshwori.

Shangri-La’s non-performing loan has also dropped significantly to 0.68 percent of the total loan by the end of the last fiscal year from 2.17 percent at the end of the previous fiscal year. Its EPS is now priced at Rs 24.73, the P/E ratio at 5.94 times while the net worth per share at Rs 139.50.-SSN