NBL decides to auction prime properties in Bara, Parsa and Kavre

ShareSansar, September 23:

Once again Nepal Bank Limited (NBL) has decided to sell more of its property to inject in the system. This time around the oldest and probably the biggest asset-based bank in the country is planning to sell at least eleven plots of land through auction in the industrialized Bara and Parsa districts in central Terai.

It is also squaring off a plot of land in Kavre district.

NBL has today published a notice to call close bids to sell some prime properties in these two districts, which includes three plots of land in Bara and eight plots in Parsa, including five in Birgunj sub-metropolis itself.

The close bids must be submitted within 22 days from today, and the bids will be opened to complete the auction next day.

It may be noted that NBL scrip had the highest turnover at Nepal Stock Exchange as soon as the bank had decided to auction some of its properties last time.

This is the first time that NBL is selling its properties outside the Kathmandu Valley.

NBL has also fixed minimum rate for each of the plots it plans to sell through auction. It has fixed minimum price of 3-15-12 plot at Barainiya VDC-1 of Bara at 70.70 lakh, Rs 1.03 crore for 6-9-14 plot at Barainiya VDC-2, and another plot of 2-13-15.5 at Barainiya VDC-1 for 53.34 lakh in Bara district. It may be noted that the plots of land are measured in bigahas.

Similarly, in Parsa district, NBL has fixed minimum rate of Rs 48.50 lakh for a plot of 0-8-7.75  at Bahuwara VDC-2 and Rs 27.50 lakh for a plot of 2-15-0 at Biruwaguthi VDC-6.

But the more attractive plots that NBL wants to auction include those inside Birgunj sub-metropolis.

NBL has fixed minimum price of Rs 1.60 crore for 0-2-0 plot at Chhapkaiya, ward number 2 of Birgunj, another plot of 481.80 square meters plus a building on that plot at ward number 2 at Rs 1.43 crore, a plot of 203.20 square meters at ward number 12 at Rs 1.15 crore, a plot of 0-1-3.23 at ward number 9 for Rs 80 lakh, a plot of 0-1-15 at ward number 12 for 1.75 crore and a plot of  1-8-15 at ward number 19.   

Similarly, issuing a separate notice NBL has also invited bids to auction two plots of land at Subba VDC-7 at Rs 89.28 lakh.

The last time NBL had invited bids to square off its plots of land was back In June third week. They included two prime non-banking assets at ward number 5 of Lalitpur --  a plot of 13 anas and another plot of one ropani, three ana, and 3 paisa. The minimum price for 13 anas of land in the urban Lalitpur was fixed at Rs 33.41 lakh and Rs 53.01 lakh for the bigger plot.

On June 18, too, NBL scrip had posted the highest turnover at Nepse and the scrip had made dramatic price gain after a long hiatus after the news that the Insurance Board is buying a plot of land of the oldest bank in the country for a cool Rs 50 crore.

The regulatory body of the insurance companies has reportedly bought 9 ropanis and 14 annas of land of the asset-based bank at Kupandole to build the Insurance Academy there.

Share investors had been expecting NBL to sell a plot of land to reduce loss, which would eventually reflect in its balance sheet as ‘sell of asset’ and increase the profitability of the bank.

NBL is probably the biggest asset-based company listed at the stock exchange, which gives it a massive cushioning against the existing as well as any possible losses in future.

It may be noted that around half its old staff are retiring in the next few months, which alone will result in more than Rs 1 arba in profit a year.

Those who keep a close tab on the market believe that these are some of the reasons NBL scrip is undervalued and will continue to rise in days to come.

Moreover, the bank is also faring much better over the recent months.