Pashchimanchal’s AGM on April 11 to endorse merger with rest of Grameen Bikas Banks; 30 % dividend, too, in pipeline

ShareSansar, March 10:

Pashchimanchal Grameen Bikas Bank Limited has summoned its 19th Annual General Meeting on April 11.

The AGM to be held in Butwal, inter alias, will endorse a special proposal for the merger of all the five state-run rural development banks and the Due Diligence Audit (DDA) Report to that effect.

The annual event will also duly approve of 15 percent of the paid-up capital as cash dividend and another 15 percent as bonus shares to the shareholders from the net profit it posted in the last fiscal year 2069/70.

The DDA for the merger of the five state-run regional development banks held back in May last year had ascertained their per unit share value between Rs 1.02 to Rs 140.

Shares of Pashchimanchal, which is probably the only development banks among the five to fair well,  was priced at Rs 140 per unit, while Purbanchal and Sudur Pashchimancal Bank's per unit was valued at merely Rs 1.02 each.

Likewise, Madhyamanchal Grameen Bikas Bank’s per unit share was valued at just Rs 1.17 and Madhya Pashchimanchal Grameen Bikas Bank was priced at Rs 77.

The merger initiated by the central bank to make a strong national level development bank to serve the poor could be completed by the end of this fiscal year, according to the head of the merger committee Jagat Pokharel.

Once the merger, the national level class 'D' microfinance development bank’s paid-up capital will shore up to Rs 1 billion as the government will be injecting additional money into the merged entity.

Currently the total paid-up capital of the five banks stands at Rs 396.5 million.

The five grameen bikas banks had signed a MoU for the merger back on October 11, 2012.