NRB disallows preference shares in capital plan; Nabil & ADBL needs extra Rs 2 arba & Rs 4.58 arba respectively to reach Rs 8 arba

According to the circular published on 8^th October 2015, NRB has said that some Banks and Financial Institutions (BFI) have included preference shares in their plan to raise their capital to Rs.8 billion by the end of fiscal year 2074. The regulatory body, through this circular, has clearly instructed that only equity shares may be used for the purpose of increment of paid up capital. This means the BFIs cannot use any kind of preference shares to reach their paid up capital. The Nabil bank limited has proposed irredeemable preference shares worth of Rs 2 arba . Similarly the Agriculture Development Bank limited (ADBL) has 6% non cumulative irredeemable preference share worth Rs 6.44 arba. So, as per the directive the Nabil and ADBL are short of Rs 2 arba and Rs 4.58 arba respectively to reach the capital of Rs 8 arba.