Fewa Bikas Bank 9th AGM to endorse 20.60% bonus share & merger process with Gandaki Bikas Bank & other BFIs; to issue 25% right after merger

Fewa Bikas Bank Limited (FBBL) will be convening its 9^th Annual General Meeting (AGM) on Poush 29, 2073. The AGM will be held at Hotel Barahi, Lakeside, Pokhara at 9:30 AM. Main agendas of the AGM are:

• To endorse 20.60 percent bonus shares from the net profit it earned from the fiscal year 2072/73.
• To issue 4:1 (25%) right share after merger process and amend article of association accordingly.
• To amend directive as to increase the allowance and services of Board of Directors.
• To maintain its, authorized capital at Rs 3 arba, paid up and issued capital at Rs1.84 arba.
• To fix Share Swap ratio at 1:1 as approved by Due Diligence Audit report for merger/acquisition process of Fewa BIkas Bank and Gandaki Bikas Bank.
• To appoint auditor to prepare Due Diligence Audit (DDA) report and 5 years Business Plan and projection for the merger process between the two development banks.
• After merger process, the merged entity will be name as Gandaki Bikas Bank Limited.
• To replace the current central office of the development bank from Pokhara-4 Chipledhunga BP Chowk, Kaski to Kathmandu Metropolitan city.
• To elect BOD members after the merger process and create position for the newly elected BOD members from Gandaki Bikas Bank.
• To dissolve the tenure of the existing BOD members after the formation of new BOD with the merger process and maintain the same BOD until its next AGM.
• To amend article of association and memorandum of association as per directed by registrar officer or Nepal Rastra Bank.
• To authorize BOD for necessary amendments.
• To authorize BOD to complete DDA report for merger/acquisition process of the development bank with other Bank and Financial Institution (BFI).

Other main agendas of the AGM include financial highlights of 2072/73 and appointment of auditor. Trading of Fewa Bikas Bank has been halted since Bhadra26, 2073 following the merger process with Gandaki Bikas Bank Limited. Thus, only those shareholders owning shares till Bhadra 25, 2073 will be entitled to the dividend of the company. Fewa Bikas Bank has earned net profit of Rs 16.48 crore in the third quarter of the fiscal year 2072/73 as per unaudited report. It’s paid up capital stands at Rs 99.50 crore and after the issuance of 20.60% bonus share the paid up capital will rise to Rs 1.19 arba. Gandaki Bikas Bank has paid up capital of Rs 53.85 crore. The development bank will be endorsing 19.57% bonus share to its shareholders. After bonus share distribution, its paid up capital will reach to Rs 64.39 crore. After the merger process, the merged entity will have paid up capital of Rs 1.84 arba. 25% right will be issued thereafter. With the issuance of 4:1 right share, its paid up capital will reach to Rs 2.30 arba. Only around Rs 20 crore will be left to meet NRB paid up requirement for national level development bank. The company might distribute bonus share to increase the remaining capital. In this way the development bank will maintain its paid up capital up to Rs 2.50 arba