Civil's integrated business from New Year Day, share trade may resume in a month

ShareSansar, April 13:

Civil Bank Limited, which finalized the merger with Civil Merchant Bittiya Sanstha and Axis Development Bank Limited earlier this month through special AGM, is starting the integrated business of the merged entity from Baisakh 1 i.e. Monday.

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.

“Once the bank starts integrated trading, 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 earlier this month had given the final nod to the swap ratio of 1:0.79 for the commercial and the other two BFIs following DDA Report prepared by BRS Neupane and Company.

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.