Kasthamandap Dev Bank announces 23% stock dividend; on-going acquisition process with Kumari Bank

Kasthamandap Development Bank Limited (KDBL) has decided to distribute 23 percent stock dividend to its shareholders. As per the notice published in NEPSE today, the development bank’s BOD meeting held on Ashwin 23, 2073 had proposed 23 percent bonus share and 1.6 percent cash dividend to its shareholders from the net profit it earned in the last fiscal year 2072/73. The decision is subjected to approval from Nepal Rastra Bank and the bank’s upcoming Annual General Meeting (AGM). KDBL has earned net profit of Rs 30.22 crore in the fourth quarter of the fiscal year 2072/73 as per unaudited report. It’s paid up capital remains at Rs 67.98 crore. SEBON has also given final approval to issue 4:1 (25%) right shares of Kasthamandap Development bank. The bank will soon be issuing 4:1 right share to its existing shareholders. After issuance of 4:1 (25%) right share, its paid up capital will reach to Rs 84.97 crore. And after 23% bonus share distribution, its paid up capital will reach to Rs 1.04 arba. Recently, Kumari Bank and Kasthamandap Development Bank had signed an agreement for the acquisition process. Trading of Kasthamandap Development Bank has been suspended in Nepal Stock Exchange Limited (NEPSE).