The promoter group — NB Group — is selling the stake at the bank so that it can repay the loans obtained from the bank and Nepal Sri Lanka Merchant Banking and Finance — which is now merged with NBBL — as per Nepal Rastra Bank (NRB)’s instructions. NRB had allowed NB Group to sell shares to the Bangladeshi bank with the condition of repaying loans from the money obtained.
Today, the bank’s 2,914,012 unit shares at a rate of Rs 260 was transferred to IFIC Bank from two companies — Manaslu Investment and Capital Investment belonging to NB Group. The Due Diligence Audit held on January had fixed the share price.
The shares were sold through Sweta Securities and Deepshikha Dhitopatra Karobar and bought through Crystal Kanchangjunga Securities, according to Nepse’s press release.
Following the sale of the stake, NB Group has to pay back the outstanding principle and interest at the different banks including NBBL. The group’s Laxmi Bahadur Shrestha, Jit Bahadur Shrestha, Jen Shrestha and other members are already in Credit Information Bureau (CIB)’s blacklist for defaulting on their loans at different financial institutions including Nabil Bank and NBBL, among others.
A year back, NRB penalised Laxmi Bahadur Shrestha — who was then serving as chairman of the bank — for illegally borrowing from the bank and Nepal Sri Lanka Merchant Banking and Finance. IFIC Bank is supposed to buy the shares in three instalments — this is the first one.
NB Group’s exit from the bank has already started to surge its share price. Expectations of improved corporate governance and loan recovery have pushed the share price of the bank to more than Rs 385 which was being traded at Rs 120 a year ago.
Besides the bulk transaction, today also the bank’s 143,405 unit shares worth Rs 53.4 million were traded in 360 transactions at Nepse.
Source: THT
