Trading of Kumari bank likely to resume tomorrow; Vibor Society, Garima Bikas & Prabhu bank in process to resume trading

Kumari Bank Limited (KBL), NCC Bank Limited, (NCCB) Infrastructure Development Bank Ltd (IDBL), International Development Bank Ltd (INDBL), Apex Development Bank Ltd (APEX) and Supreme Development Bank Ltd (SUPRME) went into merger on January 13, 2016 and the merger of Kumari Bank was called off on July 15, 2016. The special General Meeting of Kumari had cancelled its merger with these BFIs. The scrip of Kumari Bank is still at halt at Nepal Stock Exchange Limited. The swap ratio of NCC :Kumari :Infrastructure Development:Supreme Development: International Development: Apex Development bank had fixed at 100:100:77:77:73:48. As per Narendra Prasad Chhatkuli, Company Secretary of Kumari Bank Limited, “The trading might resume from tomorrow most probably,” We have completed the process to resume the trading and we expect the trading to start by tomorrow he added. Recently, Kumari Bank had proposes to issue 50% right share to its shareholders. The decision is subjected to approval from the bank’s upcoming Special General Meeting (SGM) and its concerned authorities. It’s paid up capital stands at Rs 2.69 arba. After issuance of 50% right share the paid up capital will rise to Rs 4.03 arba. Likewise, Society Development Bank Limited had signed a memorandum of understanding with Vibor Bikas Bank Limited for merger on December 24, 2015 and the joint operation of the merged entity started on September 2, 2016 as Vibor Society Development Bank Limited.  The trading of scrip of the bank is still at halt in Nepal Stock Exchange Limited. The share swap ratio of both banks was fixed at 1:1. Mr. Prajan Pradhan, Company Secretary of Vibor Society Development Bank Limited said, “We have completed the process to resume the trading and the trading will resume next week.” Similarly, Garima Bikas Bank Limited had signed a memorandum of understanding with Subhechha Bikas Bank Limited for merger on April 20, 2016 and the joint operation of the merged entity started on September 20, 2016 as Garima Bikas Bank Limited.  The trading of scrip of the bank is still halted at Nepal Stock Exchange Limited. The share swap ratio of both banks was fixed at 1:1. As per the official of Garima Bikas Bank, it’s been 4 days that the company has sent letter to Nepal Rastra bank, most probably the trading will resume after Dashain festival.” The trading of Prabhu Bank Limited (PRVU) has been halted in Nepse since September 30, 2015. It's been almost a year and the trading of shares of Prabhu Bank is still in halt though its merger process with Grand bank has been completed and joint operation started on February 12, 2016. The swap ratio for the merger, which had been fixed in 121.45:65.58 means the shareholders holding 100 units shares of Prabhu Bank will get 21.45 shares in premium, and the shareholders holding 100 units of Grand Bank will get 65.58 shares of Prabhu Bank. After merger with Grand Bank, Prabhu Bank’s Non-Performing Loan (NPL) increased more than 5%. Nepal Rastra Bank will not permit the bank to trade until its non-performing loan declines below 5%. The trading of Prabhu Bank has been halted due to the bank impotent to decrease its non-performing loan (NPL). As per the company secretary of Prabhu Bank Mr. Amit Bhandari, we are still waiting for the clearance from Nepal Rastra Bank (NRB). After we get the approval from NRB, then we will apply for approval from SEBON and Nepse to start the trading. We have completed all the procedure to list 20% right share in Nepal stock exchange. I think NEPSE will list the right share within 2 or 3 days added Mr. Bhandari. Prabhu Bank had floated 20% right share to its existing shareholders on Falgun 16, 2072.