Shangri-la Dev Bank's AGM rejects acquisition of Nepal Community Dev Bank; Paid up capital to reach Rs 2.44 arba after 80% right share

Shangri-la Development Bank Limited (SADBL)'s 12th AGM held on Jestha 19, 2074 has disapproved the final agreement and acquisition deal with Nepal Community Development Bank Limited (NCDB). Now, Shangri-La Development Bank will be acquiring Cosmos Development Bank Limited (CSDBL) only. Earlier, Shangri-la Development Bank had signed an initial agreement with Cosmos Development Bank (1 district level development bank) and Nepal Community Development Bank (1-3 district level development bank) for acquisition. Trading of Nepal Community Development Bank was suspended in Nepal Stock Exchange Limited (NEPSE) on Poush 21, 2073. Also, the bank has endorsed 80% right share in its AGM agenda after acquisition process. The bank is now seeking final approval from Nepal Rastra Bank for the acquisition of Cosmos Development Bank. Since the acquisition process with NCDB has been cancelled, the paid up capital of Shangri-La after acquiring Cosmos Development Bank will be Rs 1.35 arba. On that capital, the company will issue 80% right share i.e Rs 1.08 arba, after which SADBL's paid up will reach Rs 2.44 arba. As per NRB's monetary policy, SADBL should increase its paid up capital to a minimum of Rs 2.50 arba by the end of FY 2073/74. After the issuance of 80% right share, the bank should issue a further Rs 6 crore capital increment. Likewise, Nepal Community Development Bank Limited will now be endorsing 120% right share since its acquisition with SADBL has been rejected. After capitalization of 120% right share, NCDB's paid up capital will reach Rs 51.35 crore.