Western Dev. plans to merge with Namaste Bittya after issuing 20% bonus & 1:1 right share

As per the Monetary Policy 2072/73 unveiled by Nepal Rastra Bank (NRB), 1-3 district level Development Banks need to hike their capital to Rs 50 crore by the end of FY 2074. Earlier the minimum paid up requirement for 1-3 district level Development Bank was Rs 10 crore. Here is how Western Development Bank Limited (WDBL) plans to hike its Paid up capital. Dang based Western Development Bank Limited plans to increase its paid up capital by issuing 20% bonus shares than issuing 1:1 right shares and later going for merger with Namaste Bittiya Sanstha Limited. An official with Western Development Banks said, “the bank will be issuing 20% bonus share, 50% right shares and enter the merger process with Namaste Bittiya Sanstha.” Western Development Bank has already announced 20 percent bonus from the net profit earned in the last fiscal year. At present Western Development Bank has a paid up capital of Rs. 13.08 crore and a reserve of Rs 5.16 crore. After the issuance of 20% bonus shares, its paid up capital to reach to Rs 15.69 crore. After that Western Development Bank plans to issue right shares in the ratio 1:1 after the issuance of bonus share. After the issuance of 100% right shares its paid up capital will reach to Rs 31.39 crore. Later Western Development Bank Limited will enter into the merger process with Dang based Namaste Bittiya Sasthan Limited. Namaste Bittiya Sanstha Limited (NBSL) has a paid up capital Rs 3.12 crore and a Reserve of Rs 1.20 crore. After the adjustment of 20% bonus share declared by Namaste Bittiya Sanstha from the profit of the last fiscal year, its paid up capital will stand at Rs 3.74 crore. The last trading price of Western Development Bank and Namaste Bittiya Sanstha stands at Rs 346 and Rs 247 respectively.