Scrips of Reliable Development Bank hit circuit; higher trading seen from past few trading days

Scrips of Reliable Development Bank Limited hit the circuit on 24th September and 28th September (today). There is a rumor that Reliable Development Bank Limited (REDBL) is going to merge with Nepal Bangladesh Bank Limited (NBB). REDBL scrips amounting Rs 2.01 crore were traded today, whereas on September 24 (Thursday) REDBL scrips amounting Rs 67.92 lakhs were traded. The Last trading price of REDBL on September 23, September 24 and September 28 stands at Rs 257, Rs 282 and Rs 310 respectively. The price of REDBL hiked by 9.93% today. Mr. Dipesh Babu Tiwari, Company Secretary of REDBL said, “As per the capital plan submitted to NRB by Reliable Development Bank, the bank has a plan to raise the paid up capital by issuing bonus share and going for merger. After the merger the bank intends to function as development bank, the development bank will only seek to merge with other commercial banks if situation demands.” The development bank will issue 10 percent bonus share from the profit earned from the last fiscal year and the company has no such plan to issue right shares this year, added Mr.Tiwari. Reliable Development Bank Limited has posted net profit of Rs.9.95 crore in its 4th quarter of the fiscal year 2071/72. The company has a paid up capital of Rs 71.68 crore and a reserve of Rs 18.03 crore.