Nepal Bank shareholders back rights issuance plan

KATHMANDU, Dec 21: 

Shareholders of Nepal Bank Limited have backed the state-controlled financial institution´s recapitalization plan through issuance of rights shares. They have assured they would purchase the rights that are being extended by the bank to all its shareholders, says a bank statement. 

The country´s oldest bank is currently working on extending the rights shares to all its shareholders, except the government, which in July pumped in Rs 1.39 billion in the bank by purchasing the portion of shares allocated to it. Once the process is complete, additional Rs 2.23 billion will be injected into the state-controlled banking institution. 

As per the rights issuance plan, scheduled to be launched within mid-February, shareholders holding every share in the bank will have to purchase additional 9.5 stocks, meaning rights are being issued in the ratio of 1:9.5. 

The bank is currently in a dire need of fresh capital as its negative networth still stands at Rs 2.65 billion despite years of implementing reforms.

Source: Republica