One of the oldest and best finance-Janaki Finance mulls over to go for merge or issue bonus share to meet regulator’s paid up capital requirement

Janaki Finance Company Limited (JFL) is a three district level financial institution operating in Dhanusa, Mahottari and Siraha. As per the capital plan of Nepal Rastra Bank, 3 district level finance company must meet a capital requirement of Rs 40 crore by the end of Fiscal year 2074. At present Janaki Finance has a paid up capital of Rs 31.07 crore and a reserve of Rs 14.06 crore. There were merger talks going on between Janaki Finance and Sahayogi Bikas Bank, which has now been cancelled. So how does the company plan to raise its paid up capital? Ram Nritya Sharma, CEO of Janaki Finance Limited said, “The merger with Sahayogi Bikas Bank has been cancelled.” Sahayogi vikas Bank Limited (SBBLJ) has entered into the merger process with and Sahara Bikas Bank Limited (SHBL) lately. The trading of both the banks is at halt in Nepse. We can reach the paid up capital requirement set by Nepal Rastra Bank by issuing bonus shares in upcoming two fiscal years, but our priority will be merger with commercial banks, he added. The finance has earned a net profit of Rs 3.02 crore in the third quarter of the ongoing fiscal year. Its Annualized EPS stands at Rs 12.96 and net worth per share stands at Rs 145.26. The company has collected deposit of Rs 1.36 arba and mobilized loans of Rs 1.15 arba. The non-performing loan for the institution has decreased drastically from 5.17% of previous quarter to 3.97% which is a significant improvement. The 19th Annual General Meeting (AGM) of Janaki Finance had endorsed 25% bonus share from the net profit earned in the Fiscal Year 2071/72. The 18^th AGM of Janaki Finance had provided 70% bonus share and 7% cash dividend to its shareholders from the net profit earned in the fiscal year 2070/71. The Jankai fiancé has paid the highest stock dividend ever to its shareholders in finance sector in Nepal. Share Capital of Finance company comprises 60% from the promoters and 40% from the public. Janaki Finance was established on 2052 B.S. It has been giving services to its customers for 20 years. The company has started its service with the paid up capital amount Rs. 60 lakhs. The Profit, Net worth, collection of deposits and investments are in growing trend. It has been able to keep enough liquidity ratios. It has also succeeded in providing the regular dividends to the shareholder. Dividend History: Janaki Finance made its highest mark at price of Rs 697 when NEPSE was at around 946 index levels.