SEBON approves 80% Right Share of Nepal Bangladesh Bank; Sindhu Bikas Bank’s 80% Right added in SEBON pipeline

Securities Board of Nepal (SEBON) has provided approval to Nepal Bangladesh Bank Limited (NBB) for the issuance of 10:8 (80%) right shares. NBB will be issuing 3,20,94,068.80 units right shares worth Rs 3.20 arba in the par value of Rs 100 per share to its shareholders. Global IME Capital Limited has been assigned as the issue manager for the right share. NBB has earned net profit of Rs 54.06 crore in the second quarter of the fiscal year 2073/74. Its paid up capital after distribution of 32% bonus share for the FY 2072/73 stands at Rs 4.01 arba. After the issuance of 80% right shares, its paid up capital will reach Rs 7.21 arba. As per NRB’s directive for all commercial banks to increase their paid up capital to a minimum of Rs 8 arba by the end of FY 2073/74, NBB will need to increase its capital by a further 10.85%. Meanwhile, Sindhu Bikash Bank Limited (SINDU) has been added in SEBON pipeline today to seek approval for the issuance of right shares in the ratio 10:8 (80%). SINDU will be issuing 20,97,540 units right shares to its existing shareholders to be floated at a par value of Rs 100 per unit to its shareholders. NIBL Capital Markets Limited has been assigned as the issue manager for the right share. SINDU earned net profit of Rs 1.38 crore in the second quarter of the current fiscal year 2073/74. SINDU has a paid up capital of Rs 26.21 crore. The bank had issued 16.8% bonus share to its shareholders for the FY 2072/73. After issuance of 80% right share, its paid up capital will reach Rs 47.19 crore. As per NRB’s directive for all 1-3 district level development banks to increase their paid up capital to a minimum of Rs 50 crore by the end of FY 2073/74, SINDU will need to issue a further capital hike of around 6%.