NEPSE suspends trading in shares of Kabeli Bikas Bank and Saptakoshi Development Bank following the merger

Nepal Stock Exchange has suspended the trading in shares of Kabeli Bikas Bank Limited (KEBL) and Saptakoshi Development Bank Limited (SKDBL).

As per the notice published in NEPSE, the trading has been suspended following the merger of the development banks.

The merger agreement was signed by Mr. Taranath Niraula, Chairman of Saptakoshi Development Bank and Mr. Gopal Prasad Kafle, Chairman of Kabeli Bikas Bank. After the successful merger, the head office of the bank will be at Dhankuta and the Corporate office will be at Biratnagar.

After the merger, the total paid-up capital of the merged entity will be Rs 80.8 crore. So even after the merger, they won't be able to meet the minimum paid-up capital requirement of Rs 1.20 arba as mandated by the NRB.

Therefore, the bank will be issuing bonus and right shares to meet the requirement.The bank has also aimed to reach all local levels of Province 1 within 2 years of the merger.

Similarly, the merged entity will have a total of 422 promoter shareholders and around 28 thousand ordinary shareholders.