Finally some respite to Prabhu Bank shareholders; Trading to resume within couple of weeks after NRB nod

Nepal Rastra Bank (NRB) will soon allow clearance for Prabhu Bank to resume its share trading. The trading of Prabhu Bank was halted in NEPSE since September 30, 2015 for the merger process with Grand Bank. Trading of shares of Prabhu Bank has been in halt for more than a year although its merger process with Grand bank had completed and joint operation started on February 12, 2016.

Mr. Amit Bhandari, company secretary of Prabhu Bank, said, “Trading of Prabhu Bank will begin next week after we receive official letter from Nepal Rastra Bank.”

“Those shareholders having physical share certificates of Grand Bank will need to exchange it for Prabhu’s shares before they are allowed to be dematerialized. Shares of Grand Bank already in the demat accounts will automatically be realized to their equivalent value of Prabhu bank shares according to the share swap ratio, after which they can be traded”, added Mr. Bhandari.

Earlier on 17^th and 18^th Ashwin, 2073 trading of Prabhu Bank was resumed by NRB, whereas a Grand Bank shareholder trading was still halt then. The trading was then halted after SEBON intervened. NEPSE had requested the central bank and SEBON to solve the issue of share price adjustment that aroused due to the trading of Prabhu Bank shares only. Thus, the board had directed to suspend the trading of Prabhu Bank.

Prabhu Bank will convene its 18^th AGM on Poush 8, 2073 (tomorrow). The AGM will endorse 10:4 (40%) right shares after which the paid-up capital of the bank will reach to Rs. 8.23 arba from Rs. 5.88 arba. The share swap ratio of Prabhu and Grand bank was fixed at 121.45:65.58.

Prabhu Bank had earned net profit of Rs 28.24 crore in the first quarter of the fiscal year 2073/74.