IFIC appoints auditor for NB Bank DDA

KATHMANDU, DEC 01 -

International Finance Investment and Commerce (IFIC) Bank, one of the Bangladeshi promoters of Nepal Bangladesh Bank ( NBB ), has appointed Dhaka-based chartered accountant firm Howladar Yunus and Co (HYC) to hold a due diligence audit (DDA) of NBB .

IFIC has initiated the process of purchasing shares of Nepali promoters and another Bangladeshi promoter, Bank Asia, after the Nepal Rastra Bank (NRB) gave its green light for the proposed transaction some three weeks ago.

IFIC will acquire 32.4 percent shares from its partners, which will increase its holding in NBB to 44.55 percent. Currently, IFIC holds 9.92 percent stake in the bank, while Nepali promoters own around 26 percent and Bank Asia has 14.88 percent.

“A team of the Howladar Yunus and Company is arriving here on Sunday to undertake the job,” said NBB CEO Gyanendra Dhungana. “Nepali promoters may also appoint a separate firm for a separate DDA to determine the right value of NBB shares.”

The central bank has given NBB a three-month period to complete the transaction. “We will do our bit to complete the transaction within the deadline,” said Dhungana. With IFIC becoming the single largest shareholder of NBB , the bank has appointed Mohammad Lutfar Rahaman, who represents IFIC, as chairman. Although the new development gives the IFIC more control over NBB , the Bangladesi bank falls short by 6 percent from a majority stake, as the family of Laxmi Bahadur Shrestha and his brother Jit Bahadur Shrestha will not sell their personal shares immediately.

Laxmi Bahadur holds 3.5 percent, while Jit Bahadur has 3.30 percent.

Source: The Kathmandu Post