Nepal Bank rights shares sell like a hotcake as auction ends today

Kathmandu, Sept 24, 2013

The auction of 24 lakh 90 thousand and 804 units of Nepal Bank Limited’s unclaimed rights shares ends today.

The response to the auction was good according to the number of applications received by Civil Capital Market Limited, the auction manager.

“We received around 1,200 applications till yesterday,” CEO of Civil Capital Market Limited Bhishma Raj Chalise told ShareSansar.com “As most of the institutional players will bid for the auction in the final day, the applications will be much higher.”

The oldest commercial bank of the country had started to auction on September 16.

As the minimum price of a unit share was Rs 100, a bidder had to bid Rs 100 or more. He or she must bid for a minimum of 100 unit shares and the maximum of 24 lakh 90 thousand and 804 units.

The bank had posted a 348.80 percent growth in profit for the last fiscal year, earning a net profit of Rs 79.15 crore as against Rs 17.63 crore in the previous fiscal year.

In a sign of the bank’s improving financial health, Nepal Bank’s nonperforming loans declined to 4.53% from 5.58% in the previous fiscal.

Nepal Bank Limited has also been able to meet the minimum paid-up capital fixed by Nepal Rastra Bank for commercial banks. The bank raised its paid-up capital to Rs 3.71 arba from Rs 1.77 arba reported at the end of last fiscal.

The bank’s deposits increased 12.37 percent to Rs 62.98 arba and loans and advances rose 27.46 percent to Rs 37.85 arba.

The bank’s EPS stands at Rs 208.08 and net worth at Rs 992.42. Call in advance money has not been considered while calculating earnings per share and net worth per share.