Rastriya Banijya Bank to sell 30 % stake through IPO worth Rs 2 arba 70 cr

ShareSansar, March 16:

Government has decided to sell 30% of its stake in Rastra Banijya Bank to general public by floating shares worth approximately Rs 2 arba 70 crore.

Government owned Rastra Banijya Bank, which was established 50 years ago, has an issued capital of Rs 9 arba and is floating shares to the public for the first time.

Out of 30 commercial banks, Rastra Banijya Bank is the only bank which has not issued shares to the general public. There is a rule requiring the BFIs as well as finance institutions to issue shares to general public compulsorily.   

Government owned Banijya Bank earlier didn’t have to issue it shares to general public because bank was not able to meet Capital Adequacy ratio set by NRB. The bank which was on the verge of collapse because of huge amount of bad loan has now shown some improvements.

The bank's capital adequacy ratio which is at 10.09% is positive. As per NRB such ratio should at least be 11%.

The bank’s present paid up capital is Rs 8 arba and 58 crore. The bank has a total deposit of Rs 1 kharba and 3 arba and a total loan of of Rs 65 arba. By the end of Poush, the bank had earned a total profit of Rs 3 arba and 60 crore.

(Translated from Nagarik Daily)