Bank of Kathmandu shares likely to hit NEPSE floor soon

Priyanka Jha
ShareSansar, February 24

Good news might be round the corner for the shareholders of Bank of Kathmandu Limited (BOK). The bank's shares--whose trading had been barred after the company entered merger process--might soon see a comeback in the secondary market.

BoK's shares were called off the NEPSE floor on June 15, 2014 after the company formally notified the regulatory bodies about its merger agreement with International Leashing and Finance Company Limited (ILFC), Nepal Express Finance Limited (NEFL) and Shree Investment and Finance Company Limited (SIFC).

But with the BOK filing a formal request at the Nepal Rastra Bank for the cancellation of the merger process, the ban on trading is expected to be lifted very soon.

"We are now waiting for the nod from Nepal Rastra Bank," said BOK's spokesperson Prabin Prakash Chhetri, who also holds the position of Chief Operating Officer (COO) at the bank. "We can file for the removal of ban on the trading of our shares at NEPSE only after we get a go ahead from Nepal Rastra Bank."

"If all goes well and the NRB accepts the merger termination request soon—as is expected—the trading in our shares could resume in a month of time," COO Mr Chhetri added.  

Although BOK's merger plan of last year did not materialize, Mr Chhetri said the bank will continue to scout companies for merger and acquisition. "The AGM has also approved the proposal of keeping the option of merger and acquisition with other financial institutions open," said Mr Chhetri.

Bank of Kathmandu earned a net profit of Rs 330.76 million in the 2nd quarter of the current fiscal year 2071/72. The bank had made a profit of Rs 250.47 million in the same period of last fiscal year.

The 20th AGM held this month endorsed 10.42 percent bonus shares for its shareholders from the net profit it earned in 2070/71 fiscal year.