Agriculture Development Bank conducted 9th AGM; 15% bonus & 50% right share approved; 2 lakh shareholders to be benefitted

Agriculture Development Bank Limited (ADBL) has successfully conducted its 9^th Annual General Meeting (AGM) on Baisakh 14, 2073. The AGM endorsed 15% bonus share and 2:1 (50%) right share. Also the bank approved to increased its authorized capital up to Rs 18 arba . Mr. Pramod Kumar Karki , Chairman of the bank highlighted on the financial reports of FY 2071/72 and its upcoming future projects. At present, the bank has Rs 9.86 arba paid up capital. Of the total amount Rs 3.42 arba is public share and Rs 6.43 arba is Nepal Government’s preference share. As per the monetary policy guideline, commercial banks need to increase its paid up capital up to Rs 8 arba. The commercial bank has preference shares of Rs 6.43 arba of Nepal Government in its paid up capital. Since NRB denies the capital plan inclusive of preference shares, the company has submitted new capital plan to NRB. The bank has decided to make its paid up capital up  to Rs 8 arba till Ashad end, 2074 as per the press release published on Baisakh 15, 2073. The promoter public share structure of the bank stand at 51:49 ratios . The decision of bonus and right share approval will benefit approximately 2 lakh shareholders. Main agendas of the AGM were:

• To endorse 15 percent bonus shares and 0.79 percent cash dividend for tax purpose from the net profit it earned from the fiscal year 2071/72.
• To increase authorized capital up to Rs 18 arba and amend the article of association accordingly. (After increment of authorized capital its ordinary & preference share capital will reach 9 arba each.)
• To change preference share capital of Rs 1 arba (Rs.1, 00, 40, 88,000) into ordinary share. After conversion the preference share capital will remain at Rs 5.43 arba from the existing of Rs 6.43 arba.
• To endorse 2:1 (50%) right shares after bonus share is issued.
• To endorse help provided to earthquake victim of Rs 2.05 crore as a part of corporate social responsibility (CSR).
• To amend article of association and memorandum of association as per directed by registrar officer or Nepal Rastra Bank.

and appointment of auditor. Agriculture Development Bank has earned net profit of Rs 38.75 crore in the second quarter of the fiscal year 2072/73 as per unaudited report. It’s paid up capital stands at 3.42 arba and after the issuance of 15% bonus share the paid up capital will rise to Rs 3.93 arba.