Scrip of 7 banks with less than Rs 2 arba paid-up expected to surge today

ShareSansar, July 20:

The price of seven commercial banks, which failed to shore up their paid-up capital to Rs 2 arba by the end of the fiscal year, is likely to surge in the secondary stock market today.

The surge can be expected as the new monetary policy announced by the central bank on Friday states that the commercial banks which have failed to shore up their paid-up capital to Rs 2 arba will not be allowed to issue cash dividend and expand their branches.

This means that a number of commercial banks will  now have to issue either right or bonus shares, which is not at all bad for the stock investors or the market.

These BFIs will now face restriction on deposit and loan mobilization, too. This measure clearly indicates that the central bank is very serious when it comes to paid-up capital requirement.

The list of commercial banks with paid-up capital less than Rs 2 arba (as per Q3 financial report):

Everest Bank Limited         1.92 arba
Bank of Kathmandu            1.92 arba    
Siddhartha Bank Limited   1.81 arba
Lumbini Bank Limited         1.72 arba
Laxmi Bank Limited            1.69 arba
Kumar Bank Limited           1.60 arba    
NCC Bank Limited                1.47 arba