New promoters set to revive troubled NB Insurance New promoters set to revive troubled NB Insuranc

KATHMANDU, Jan 20  :

Beema Samiti has decided to give a new lease of life to NB Insurance Co Ltd after a new group of promoters came at the helm of the troubled non-life insurance company.

But the insurance sector regulator will do so only after the new promoters raised paid-up capital of the company to Rs 250 million.

The paid-up capital of NB Insurance currently stands at Rs 141.9 million.

Beema Samiti on Monday formed a five-member temporary board of directors (BoD) to work out fund increment plan within 15 days. The BoD can apply for resumption of operations after raising the paid-up capital to Rs 250 million.

“We have decided to revive the company as the new group of promoters has shown intent to lead it," Fatta Bahadur KC, chairman of Beema Samiti, told Republica.

Promoters of IME Group and Hathway Investment Nepal Ltd, and Pratap Jung Pandey have acquired 47 percent share in NB Insurance held by NB Bank and NCC Bank.

According to Beema Samiti, the temporary BoD comprises of Ambika Prasad Paudel from Hathway Investment Nepal Ltd, Pratap Jung Pandey, Yogeshwore Sharma Dhakal of IME Group, Elsan Shrestha of NB Group, and NB Bank representative Suresh Devkota.

Talking to Republica, Ambika Prasad Paudel of Hathway Investment Nepal said the meeting of BoD held on Monday decided to collect fund on calls in advance by distributing right shares in 10:8 ratio as decided by the company´s annual general meeting held in July, 2013. "Right shares will be distributed to general shareholders later on after taking approval from the Securities Board of Nepal,” said Paudel. The meeting also nominated Paudel as the chairman of BoD.

Hathway Investment, IME Group and Pandey jointly own 47 percent of shares in NB Insurance. Similarly, Nepal Bangladesh Bank and NB Group own 10 percent and 23 percent of the shares, respectively. Remaining 20 percent of shares are owned by general public.

Paudel also said that they would soon apply at Beema Samiti for resumption of operation. The meeting also decided to find an appropriate location to shift the company´s headquarters from Kamaladi.

Beema Samiti has also directed the BoD to hold a special AGM by mid-May and handover the authority to the new elected body of promoters. It has also prepared a report on claims and liabilities of the company which will be handed over to the company after it resumes operation.

According to Due Diligence Audit report of the insurance company, Rs 35.4 million, which the company had deposited in World Merchant Banking and Finance Company, is at risk.

 The company´s management had deposited the amount in fixed account despite Beema Samiti´s direction to deposit the amount in only in a commercial bank.

The finance company was later declared ´troubled´ by Nepal Rastra Bank.

Source: Republica