Laxmi Bank raises authorized capital to Rs 3 arba; Sudesh Khaling new CEO

ShareSansar, March 30:

Laxmi Bank Limited has decided to raise its authorized capital to Rs 3 arba as the existing paid-up is just enough to issue 15 percent bonus shares to the shareholders from the profit it posted in the last fiscal year 2069/70.

Addressing the 13th Annual General Meeting  of the bank held on March 27, chairman of the bank Rajendra Khetan said that the bank aims to shore up the paid-up to Rs 5 arba shortly.

The AGM also appointed Executive Vice-president and Chief Risk Officer of the bank Sudesh Khaling as the new Chief Executive Officer and that the bank has already sought the approval for his appointment to the post from the regulator.  
Khaling now succeeds CEO Suman Joshi though it not clear as to why Joshi stepped down.

The AGM also endorsed 25 percent right shares besides approving 15 percent bonus shares to the shareholders from the net profit it posted in the last fiscal year 2069/70.

The bank had announced the book closure for the bonus shares on March 13. This means that  those who hold the shares of the company till March 12 will be entitled for the bonus shares.

“As for the right shares we will announce a separate book closure date for the right issue in future,” bank’s company secretary Pyush Raj Aryal told ShareSansar. “We have to get the approval of SEBON to issue the right shares first.”

The bank is issuing the right shares after calculating the bonus shares, according to the AGM notice published by the bank earlier this month.

“After the issuance of the bonus shares our existing paid-up capital of Rs 1.69 arba will rise to Rs 1.94 arba and it will further rise to Rs 2.43 arba after the right issue,” Aryal further informed.

Laxmi Bank had posted a net profit of Rs 45 crore in the last fiscal year.

It may be noted that Laxmi Bank had distributed 10 percent cash dividend for the previous fiscal year 2068/69, too.