IFIC to send new management at NBBL soon

ShareSansar, September 29:

IFIC Bank is making a final preparation to send its representatives to the Board of Directors of Nepal Bangladesh Bank Limited (NBBL) after buying promoter shares of the latter.

NBBL CEO, Gyanendra Prasad Dhungana had gone to Bangladesh last week to meet with the top officials of the bank headquartered there to discuss the deal, according to sources privy of the development.

Dhungana said also discussed the possibility of renaming NBBL, the sources added.

“We have held preliminary round of discussion with the Bangladeshi officials,” he said. “But we have to wait for some more time for these things to finalize.”

After buying the majority of the promoter’s stake of NBBL, IFIC Bank had filed an application at the Nepal Rastra Bank seeking a new management there.

However, the central bank is yet to give a nod for the new management at NBBL.

Earlier this month IFIC Bank, which is headquartered in Bangladesh, had purchased 2.91 million unit shares of the NBBL promoter’s group at Nepal Stock Exchange.

As directed by the central bank, the promoter group, NB Group, sold the stake at the bank so that it can repay the loans it illegally obtained from the bank and Nepal Sri Lanka Merchant Banking and Finance, which is now merged with NBBL, to repay the loans.

NB Group’s 2,914,012 unit shares has been transferred to IFIC Bank at a rate of Rs 260.

It may be noted here that IFIC Bank is to buy the NBBL shares in three installments, and it is yet to pay two installments.

“We will shortly release the second installment,” Dhungana said. “The headquarters will release the money within a week after the central bank gives a nod to the deal.”

IFIC has stated that it will release Rs 65 crore in the second installment.