Nepal Investment & Sunrise bank AGM today; to approve 33% &21.5% bonus share respectively

Nepal Investment Bank Limited (NIB) is conducting its 29^th AGM today (Kartik 30, 2072). The AGM is going to be held at Nepal Academy Hall, Kamaladi, Kathmandu, 10 am. The main agendas of the meeting are:

• To endorse 33% bonus share from the net profit of fiscal year 2071/72. As the issuance of bonus share capital will increase paid up capital, the AGM will also amend the article of the association to increase authorized capital, issued capital and paid up capital.
• To amend clause 5 (d) and 5 (e) of the memorandum of the association.
• To amend the articles 8 (2), 8 (2) (a), 8 (2) (b) and 8 (3) of the association.
• To add article 19 (6) after 19 (5)
• To amend the article 31 (1) (b) of the association.
• To maintain 30% stake of the public shareholders as per the directive of Nepal Rastra Bank, the bank will issue additional shares to the public shareholders to increase the paid up capital after the issuance of bonus share.
• Authorize BOD to initiate merger or acquisition process with other bank and financial institutions.

Other Agendas of the AGM include financial highlights of 2070/71, endorse 1.74% cash dividend for the tax purpose, to consolidate the books of NIBL Capital Markets Ltd and NIBL ltd. for the fiscal year 2071/72 and appointment of the auditor. Only those shareholders owning shares till Kartik 12 will be entitled to the dividend of the company. The register of their shareholders will remain close from Kartik 13, 2072 till Kartik 30, 2072 for the purpose of its upcoming (AGM). At present the bank has a paid up capital of Rs 4.771 arba whereas after the issuance of 33% bonus share its paid up capital will stand at Rs 6.345 arba. The bank will be issuing 14.2857% of Rs 6.345 arba  paid up capital of the bank, which means 90,65,278 unit shares will be floated to the public shareholders. The bank will be issuing these shares in FPO modality. At present Promoter and ordinary shareholders’ share structure in the commercial bank stands at 80:20 ratios. After the FPO promoter and ordinary shareholders share structure will be at 70:30 ratio. The premium amount has not been fixed yet, although it can be expected that the premium will not be less than Rs 400. After the FPO, the bank’s paid up capital will stand at Rs 7.252 arba. At present the bank has a reserve of Rs 5.13 arba, even if the FPO is issue at a minimum of Rs 400 then 2.71 arba Rs will be added to the reserve of the bank after which its reserve will stand at Rs 7.85 arba. NIBL seems to be comfortable to meet the NRB directive to increase the paid up capital to Rs 8 arba by the end of Asad, 2074. Sunrise Bank Limited (SRBL) is convening its 8th Annual General Meeting (AGM) today (Kartik 30, 2072). The AGM is going to be held at 11:00 AM at Amrapali Banquet, Baluwatar, Kathmandu. Main agendas of the AGM are:

• To endorse 21.5 percent bonus share and 1.13 percent cash dividend (for tax purpose) from the net profit it earned from the fiscal year 2071/72.
• To amend expenses of Rs 54.84 lakhs that was done during the economic support program under the CSR.
• Allowance per meeting will be increased up to Rs 12,000 and 10,000 of chairman and BOD member respectively. Also to provide Rs 15000 to BOD member on title ‘mobile, transportation and newspaper expenses’
• To increase the issued capital and paid up capital and amend the article of association accordingly.
• Authorize BOD to initiate acquisition/ merger/ takeover process with other financial institutions.

Other Agendas of the AGM include financial highlights of 2071/72 and appointment of auditor. Only those shareholders owning shares till Kartik 10 will be entitled to the dividend of the company. The register of their shareholders will remain close from Kartik 11, 2072 till Kartik 30, 2072 for the purpose of its upcoming (AGM). At present SRBL has a paid up capital of Rs 2.44 arba. After the issuance of 21.5 % bonus shares, its paid up capital will reach to Rs 2.96 arba. Sunrise Bank has earned net profit of Rs.47.43 crore in its fourth quarter of the fiscal year 2071/72.