Prabhu Bank Ltd likely to issue 20% Right Share

Prabhu Bank Limited (PRVU) is in the final phase of acquiring Grand Bank and most probably  the integrated business will start by the end of Bhadra.

Special General Meeting (SGM) of Prabhu Bank Limited (PRVU) held on 7th Shrawan, 2072 had approved the acquisition of Grand Bank Limited. Prabhu Bank Limited (PRVU) acquiring Grand Bank Limited (GRAND) has been the first ever acquisition of a commercial bank by another in Nepal.

Ashok Sherchan, CEO of Prabhu Bank said, “ Prabhu bank has applied for the final approval in NRB and most probably NRB will be providing a final nod for joint operation within this week.”

Upon the NRB endorsement, the shareholders holding 100 units of Prabhu Bank shares will get  21.45 shares in premium, and the shareholders holding 100 units of Grand Bank will get 65.58 shares of Prabhu Bank, for that the separate book closure date will be published.

“Integrated operation of both the banks will commence by the end of Bhadra,”added Sherchan.

Prabhu Bank’s will also  be issuing 20 percent right shares to its shareholders within the a month.

“The right share has already received the ICRA rating and a separate book closure date will be published for it,” Sherchan said.

Nabil Investment Banking Limited has been assigned as the issue manager for the right issue.

Prabhu Bank has posted a net profit of Rs 1.03 arba in the fourth quarter of the last  fiscal year. The company reserve figure stands Rs 47.69  crore plus during the same period. The bank will pay out stock dividend this time to its shareholders from the profit of the last fiscal year.  The bank will not be providing any cash dividend as its NPL is at 7.39 percent.

However, any dividend will be claimed only on Rs 3.20 arba paid up capital.

The paid up capital of Prabhu will reach to Rs 5.92 arab after the issuance of 20% right share and after the finalization of the ongoing acquisition of Grand Bank and Nepal Development Bank.

It seems like Prabhu Bank will easily meet the paid up capital requirement of 8 arba within fiscal year  2074. -SSN

Development banks licensed to operate in one-district ask NRB to lower new capital requirement

Expressing dissatisfaction over the recent decision of Nepal Rastra Bank (NRB) to increase their minimum paid-up capital requirement by 25 times, development banks licensed to operate in only one district have urged the central bank to increase their paid-up capital by only four times like other bank and financial institutions (BFIs).

Unveiling the Monetary Policy for Fiscal Year 2015/16, NRB asked BFIs to raise their minimum paid-up capital within two years. It has already directed them to present their capital plan with a clear timetable to its BFIs Regulation Department by mid-September.

While the NRB has asked commercial banks, other development banks and finance companies to raise paid-up capital by four times only, development banks operating in one to three districts have been asked to raise their paid-up capital by 25 times to Rs 500 million.

In a meeting with Meeting NRB Deputy Governor Gopal Prasad Kaphle on Friday, Development Bankers Association Nepal (DBAN) requested the central bank to revisit the decision. Bankers of development banks licensed to operate in only one district told Kaphle that it was almost impossible for them to arrange such a massive paid-up capital within two year.

"The delegation of DBAN, comprising of CEOs of 10 one-district development banks, requested the central bank to lower the paid-up capital requirement as it is difficult for them to increase the capital by 25 times," Krishna Prasad Lamichhane, president of DBAN, told Republica. "Their concern is that the capital is too high for the promoters to put in extra money while they will not be acquired or merged by other capital-starved BFIs as their low-capital will mean nothing for the partner."

According to DBAN President Lamichhane, bankers of the one-district level development banks have sought the option from the central bank to be downgraded to 'D' class micro finance if new paid-up capital requirement cannot be lowered.

According to NRB, there are 12 one-district level development banks across the country.-Republica

Market is bound to take a leap - PM's Economic Advisor

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Grand Bank barred from opening new deposit accounts & providing loans by NRB

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Sewa Bikas Bank announces 21.5% dividend, EPS 28.3

 

Sewa Bikas Bank Ltd has announced 21.5 percent dividend to its shareholders.

According to the bank’s statement, the meeting of the bank’s board of directors (BoD) held on Tuesday in Butwal decided to provide 20 percent bonus shares and 1.5 percent cash dividend for the tax purpose.

Bank’s CEO Mahesh Prasad Kaphle said that the decision is, however, subject to the approval of the Nepal Rastra Bank (NRB) and the eighth annual general meeting of the bank.

According to Bishnu Kunwar, Deputy Manager of the bank, the bank has already provided 65 percent of dividend so far. He also said that the bank’s paid-up capital will reach Rs 36.64 crore after the bonus and rights shares are issued.

Nilgiri Bikas Bank to provide 14 percent dividend

Nepal Rastra Bank (NRB) has given permission to Nil Giri Bikas Bank to provide 14 per cent dividend to its shareholders.

The approved 14 per cent dividend will be provided to the share holders after deciding in the coming seventh annual general meeting (AGM) of the bank, said senior officer Anuman Shrestha at the bank.

Century Bank to issue public IPO shares from Jan 9 to 13, OFFICIAL NOTICE

Century Commercial Bank is going to issue its Initial Public Offering (IPO) worth Rs 92 crore on January 9. The IPO will close on January 13. Century’s IPO is one of the most expected events in the stock market not just because of its sheer volume but also because it is the last IPO to be issued by any commercial bank of the country.

Nepal Rastra Bank has stopped issuing license to the commercial bank, and, on the contrary, has been directing the commercial banks and other BFIs to seek merger.

Nepal Investment Bank NIBL guarantee 25% cash dividend & 10% bonus shares

Nepal Investment Bank Limited, the commercial bank with the largest client base, is holding its Annual General Meeting today.

The 27th AGM of Nepal Investment Bank being held at Nepal Academy Hall, Kamaladi in Kathmandu is due to formally endorse 35 percent dividend – 25 percent cash and 10 percent bonus shares—to the shareholders from the net profit the bank posted in the last fiscal year 2069/70.

Nepal Bangladesh Bank firm on 10% bonus shares & 7.79% cash dividend, AGM in Magh

Nepal Bangladesh Bank Limited is gearing up to hold its Annual General Meeting in the month of Magh, though it had initially planned to hold it in Poush, due to some internal procedural delays.

“Purely due to internal procedures that we might not be able to hold the AGM in Poush itself and that we might have to hold it in Magh,” a high-ranking bank official told. “But we are fundamentally stronger than before and are firm when it comes to endorsing the dividend we have pledged.”

NMB Bank Limited to give only 10% dividend

NMB Bank Limited could endorse only ten percent dividend to the shareholders during its AGM yesterday though it had pledged 15 percent cash dividend from the net profit it bank earned in the last fiscal year 2069/70.

NMB could not pledge 15 percent dividend after the central bank asked the commercial bank not to include Rs 10 crore invested in NMC Capital Limited, a subsidiary of the bank, and to keep that sum aside in an investment adjustment fund.

Rural Microfinance Development Centre RMDC proposes 15% cash dividend

Rural Microfinance Development Centre Limited has proposed 15 percent cash dividend to its shareholders from the net profit it earned in the last fiscal year.

Global IME Bank proposes15% bonus share

Global IME Bank has proposed 15 percent bonus share to its shareholders from the net profit it registered in the last fiscal year 2069/70.

The commercial bank had earned a net profit of Rs 55 crore in the last fiscal year.

Court ordered closure of United Bikas Bank

The Appellate Court Hetauda has formally ordered the closure of United Bikas Bank.

A joint bench of judges Jeevan Hari Adhikari and Sarita Sharma has ordered the revocation of the development bank based in Jeetpur, Bara, and appointment chartered accountant Jagadish Bhattarai as the liquidator.

Bank of Kathmandu Bok AGM approves 14% bonus shares & 0.74% cash dividend

The 19th AGM of the Bank of Kathmandu (BoK) has endorsed 14 percent bonus shares and 0.74 percent cash dividend to its shareholders from the net profit it earned in last fiscal year 2069/70.

Bhrikuti Dev Bank proposes 20% bonus share, Guheswori Merchant Banking & Finance Ltd offers 17% dividend

Bhrikuti Development Bank has proposed 20 percent bonus share from its net profit in the last fiscal year.

The bank based in Butwal had posted a net profit of Rs 8.41 crore in the last fiscal year.

It had distributed 15 percent bonus shares last year.

Bank Of Kathmandu BoK holding AGM today, to endorse 14% bonus share

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Victims demand auction of properties of Oriental Builders at market price

The depositors of Oriental Cooperative have demanded auction of the properties of the cooperative at prevailing market price, alleging that NIC Asia Bank was trying to auction the properties in an “unjust” manner.

The depositors of the cooperative in crisis claim that the bank is trying to auction the properties of Oriental Builders, a subsidiary of the cooperatives, so as just to recover its loan.

Sunrise Bank plan 11% dividend & merge with H & B Development Bank

Sunrise Commercial Bank Limited has been holding series of discussion with H & B Development Bank for a merger.

“We have hold three rounds of discussion with H & B Development Bank,” head of Share and Legal Department of Sunrise Bank Tika Bhattarai told .

52.63 % dividend of Excel Dev Bank, 19% bonus share of Triveni Bikas Bank approved; Mahakali Bikas Bank proposes 18.9% dividend

Nepal Rastra Bank has endorsed 52.63 percent dividend – 50 percent bonus shares and 2.64 percent cash — proposed by Excel Development Bank Limited from the profit it posted in the last fiscal year.

After the distribution of the bonus shares, the development bank’s paid-up capital will rise to Rs 15 crore.

Standard Chartered Bank Nepal proposed 10% bonus share & 40% cash dividend

Standard Chartered Bank Nepal Limited is holding its Annual General Meeting on December 3, and has also announced the book closure for the same from October 30.
 The 311th meeting of the bank’s Board of Directors took the decision to this effect, according to a notice issued by the bank .