Everest Bank to issue Bonus shares worth Rs 3.53 arba; Merger (Rs 2 arba) &FPO (Rs 45 crore) also included in capital plan

Everest bank has a paid up capital of Rs 2.13 arba (including Rs 12 crore convertible preference shares) at present. It has Rs 4.88 arba in general reserve. At present Everest Bank can capitalize Rs 3 arba 53 crore from its reserve fund. In another word the bank can distribute at least Rs 3 arba 53 crore as bonus share to increase its paid up capital. Trilochan Pangeni, spokesperson of the Nepal Rastra Bank said that the Everest bank will be using Rs 3.53 arba from reserve to issue bonus shares, the bank also has plan to merge with another bank with a paid up capital of Rs 2 arba, the bank will also issue FPO worth Rs 45 crore to hike its paid up capital up to make Rs 8 arba by the end of Ashad 2074 B.S. Looking at the current paid up capital and the distributable amount in the reserve fund of the bank, the Everest bank likely to give 80 % to 100 % bonus share this year. Rs 3.53 arba is 165 % of current paid up capital which is Rs 2.13 arba; in another words the bank may give 165 % bonus share to meet up the paid up capital of Rs 8 arba. The Everest bank made profit of Rs 1.57 arba in the fourth quarter of last fiscal year. EPS of Everest bank stands at Rs 73.66. Last year the Everest bank distributed 50% cash dividend and 12% bonus share. The Everest bank had distributed 50% cash dividend and 10 % bonus share from the profit of fiscal year 2069/70.