NCC Bank ownership transfer dispute ends; AGM to be held soon

ShareSansar June 22:

A two year long dispute regarding ownership transfer of shares of Nepal Credit and Commerce Bank Limited (NCC) is now going to end.  

The ownership transfer dispute started after a shareholder of NCC Bank, Ms. Binu Shrestha, sold shares through licensed stock broker and these shares were not transferred to buyers’ names.

NRB on Thursday issued directives to end the dispute related with ownership transfer.

NCC Bank will be scheduling its AGM soon.  The bank was not able to hold its AGM as NEPSE has earlier directed NCC Bank not to hold its AGM until 1 lakh 7 thousand unit shares sold by Ms. Binu Shrestha are transferred to the buyers.  

Due to the ownership transfer dispute, the bank was not able to conduct its 16th and 17th AGM and as a result it has not been able to distribute 38 percent bonus it had promised to shareholders from the net profit the bank posted in the last fiscal years 2069/70 and 2070/71.

Nepal Rastra Bank (NRB) will hand over the management to NCC Bank after the AGM. NCC Bank has been under the control of NRB since 2070.

NCC Bank Limited has posted 92.91% growth in net profit for the third quarter of the current fiscal year 2071/72. It has reported a net profit of Rs 33.19 crore.

The bank’s NPL has declined from 3.40 % in the third quarter of the last fiscal to 2.40% this year.

Its EPS now stands at Rs 29.02, net worth per share at Rs 203.40, and CD ratio at 76.30%