Joint two AGMs of NCC Bank by Ashoj-end; Bonus shares of at least 37% 

ShareSansar, August 31:

Nepal Rastra Bank (NRB) deputed management committee at Nepal Credit and Commerce (NCC) Bank Ltd is working on a full swing to hand over the leadership role to the elected board of directors (BoD) by the end of Ashoj.

According to the bank officials, the bank is planning to convene the annual general meeting (AGM) of fiscal year 2069/70 and fiscal year 2070/71 by the Ashoj end deadline set by the central regulatory bank.

Niraula told ShareSansar that they are committed to hold the AGM by Ashoj end. "Plans are to convene the AGM by the Ashoj end deadline," he said.

“The audit report is almost completed. We will convene our AGM as soon as the audit report is endorsed by the central regulatory bank,” NCC Bank spokesperson Ramesh Aryal told ShareSansar.

NRB had taken over the management of the NCC Bank on February this year after its efforts to settle down the tussle between two promoter groups went into vain.

The central bank had deputed a three-member team under the leadership of its director Laxmi Prapanna Niraula with keeping the existing management team intact.

The central bank’s intervention has come on the wake of the disputes between the two promoter groups-- one associated with NB Group and the other led by Nirmal Pradhan—which even affected the daily operation of the bank.

With the capital below Rs 2 arba, it is almost sure that the NCC Bank will distribute at least 37 percent bonus shares to its shareholders in order to raise the paid-up capital to the Rs 2-arba mark as set by the NRB.

“The bank will issue the bonus shares to maintain the prescribed level of paid-up capital. How much it will issue, this I cannot say exactly as it all depends upon the board, auditors, AGM and the approval of the NRB,” added Aryal.

NCC’s current paid-up capital stands at Rs 1.47 arba.

The bank earned Rs 36.58 crore net profit in the last fiscal year 2070/71 while it’s profit was Rs 35.48 crore in the previous fiscal year 2069/70.

Given that the reserve and surplus of the bank rose to Rs 1.16 arba last year from Rs 79.42 crore, it can easily distribute the bonus shares of at least 37 percent to increase its capital base.

Meanwhile, the expectation that the bank will issue bonus shares to maintain the prescribed paid-up capital in this year, the investors are seemed to be attracted toward toward the scrip of the NCC Bank.

The share price of the NCC Bank is observing a rapid surge.

The price of the per unit share of NCC Bank rose by Rs 209 in two months. The share price rose to Rs 663 as of August 28 from Rs 457 on the last trading day of June.