Civil Bank distributing news share certificates from Sunday, trading likely in ten days

ShareSansar, April 18:

Trading in shares of Civil Bank Limited, which finalized the merger with Civil Merchant Bittiya Sanstha and Axis Development Bank Limited earlier this month through special AGM, is likely to begin by Baisakh 15.

“We are distributing new share certificates from Sunday,” a highly placed source at the bank told ShareSansar today. “We have also applied for the resumption of share trading with SEBON. We are planning to resume trading by Baisakh 15. Even if that deadline cannot be met for some reason, we will begin trading by Baisakh 20.”

As the last traded price of Civil Bank scrip was Rs 138, the trading will resume from that point, the official said, adding that they expected the scrip to rise considerably following the merger.

According to the bank official, the new share certificates can be collected from the office of bank’s RTS, Civil Capital Market Limited at Kathmandu Plaza, Kamaladi from 10:00 AM to 3:00 PM Sunday through Thursday, and from 10:00 AM to 1:30 PM on Friday.

As a merged entity, Civil Bank had started the integrated business from Baisakh 1 i.e. April 14.

A senior official with the bank told ShareSansar that the merged Class ‘A’ bank, which has retained the name ‘Civil Bank Limited’ will expedite the process to resume the share trading at the earliest.

“We want to assure the shareholders that the shares will be listed for trading as soon as possible. It will only take as long as the regulator will take in following the due process. In other words, the trading will most probably resume within a month.”

It may be noted that Nepal Stock Exchange Limited (NEPSE) has suspended the trading of shares of all three BFIs in the merger process in October.

The separately held special AGMs of the three BFIs in March had given the final nod to the swap ratio of 1:0.79 for the commercial and the other two BFIs following the DDA.

They have also decided to retain the Board of Directors and senior officials of all three BFIs. It may be noted here that they decided to retain these officials as Civil Bank and Civil Merchant have common promoters.

Following the decision, the incumbent Chief Executive Officer of Civil Bank Kishore Maharjan has been retained as the CEO of the merged entity.

With the merger the bank will now have 49 branches and 25 ATM counters.

Civil Bank and Civil Merchant Bittiya Sanstha are owned by the Civil Group while Axis Development Bank was formed following the merger of Pashupati Development Bank and Udyam Development Bank.

Civil Bank has a paid-up capital of Rs 2 arba, reserve and surplus of Rs 15.3 crore. It had posted a net profit of Rs 12.12 crore in the last fiscal year, and its EPS stands at 7.56 and has a net worth 107.65.

Axis Development Bank has a paid-up capital of Rs 71.81 crore, reserve and surplus of Rs 9.42 crore, and it earned a net profit of Rs 2.03 crore. Its EPS stands at Rs 2.84 and it has a net worth of 113.13.

Similarly, Civil Merchant Bittiya Sanstha has a paid-up capital of Rs 16.65 crore, reserve and surplus of Rs 3.17 crore. It had posted a net profit of Rs 1.32 crore in the last fiscal year, and its EPS stands at 7.98 and has a net worth 119.16.