Sewa Bikas Bank to issue 120% (51.06 lakh unit) right shares from Mangsir 23; Profit rises by massive 113.03% in Q1

Sewa Bikas Bank Limited (SEWA) will be issuing 1:1.2 (120%) right shares to its existing shareholders from Mangsir 23, 2073. According to the notice published by the development bank today, the rights issue will remain open for 35 days before closing on Poush 27, 2073. Sewa Bikas Bank will be issuing a total of 51, 06, 662 units right shares at the face value of Rs 100. The book closure date for 120% right issue was set for Ashwin 19, 2073 for one day. Only the shares registered one trading day ahead of the book closure dates i.e. Ashwin 18, 2073 are eligible for the right shares. NMB Capital Limited is assigned as the issue manager for the right issue. Interested shareholders can collect the application forms from NMB Capital, Naxal, Kathmandu and from all branch offices of Sewa Bikas Bank and NMB Bank Limited. After the adjustment of the rights shares, the bank total paid-up capital will reach to Rs 93.62 crore from existing Rs 42.55 crore. The bank has authorized capital of Rs 2.50arba. Its public-promoter share structure stands at 51:49 ratio. Meanwhile, Sewa Bikash Bank has posted astounding profit growth of 113.03 percent in the first quarter of the current fiscal year 2073/74. Publishing the unaudited financial report today, the bank stated that its net profit rose to Rs 2.64 crore in the first quarter of current fiscal year 2073/74, up from Rs 1.24 crore in the corresponding period of the previous fiscal year. Its net interest income has risen from Rs 3.46 crore in corresponding quarter to Rs 5.83 crore in the current quarter. Sewa Bikas Bank’s paid up capital remains at Rs. 42.55 crore. The bank reserve and surplus increased to Rs.26.38 crore from Rs 18.41 crore. The development bank has collected Rs 5.06 arba in the Q1 up from Rs 3.97 arba in the corresponding quarter. Likewise, it has extended loans and advances of Rs 4.40 arba in Q1 whereas in the same period last year the figure stood at Rs 3.35 arba. Its non-performing loan (NPL) has increased to 0.41 percent from 0.15 percent in Q1. SEWA’s annualized earning per share (EPS) stand at Rs 24.88, net worth per share at Rs 162.01 and the P/E ratio at times.