Bank of Kathmandu to give 13.25% bonus shares to its shareholders; Bank set to meet the capital requirement through premium of the previously auctioned shares after the end of FY 2074/75

Bank of Kathmandu Limited has informed Nepal Stock Exchange about the proposal for issuing 13.25% bonus shares to its shareholders.

As per the notice published in NEPSE, the 62^nd AGM of the bank has decided on the proposal of the bonus share.

The decision is subject to the approval from NRB and its upcoming AGM.

The current paid up capital of the bank Is Rs 5.63 arba and after the adjustment of the auctioned promoter shares, the paid up capital will reach Rs 6.24 arba. And after the 13.25% bonus shares allotment the paid up capital will reach Rs 7.06 arba which will still be short by about 94 crore from the requirement of Nepal Rastra bank.

As per the official of the bank, the bank will fulfill its capital requirement from the premium that it had gained from the auction of 61.58 lakh units promoters shares from Mangsir 22 to Mangsir 29, 2074. The bank will not be floating further rights shares but will convert the premium amount into bonus shares. However, the issuance of bonus share will occur only after the end of the fiscal year and the bank will meet the requirement laid by Nepal Rastra Bank.

The bank will also be conducting its AGM for the FY 2073/74 within Baisakh- Jestha of 2075. The bank will announce bonus shares for meeting the paid up capital requirement only after the end of the fiscal year 2074/75.