IFIC Bank – based
in Bangladesh – bought 2.91 million unit of promoter shares of Nepal Bangladesh
Bank (NBB) – the first among the planned three installments – from the secondary
market.
One of the
major promoter of the bank, NB Group has sold its 2,914,012 unit of promoter
shares at rate of Rs 260 at the Nepal Stock Exchange (Nepse) today to repay its
debts it had taken from various banks including Nepal Sri Lanka Merchant
Banking and Finance that has been merged with NBB some three years ago in 2011,
according to the central bank’s direction.
The Due Diligence Audit had fixed Rs 260 per unit promoters share price in January.
Manaslu Investment and Capital Investment – both belonging to the notorious NB Group – sold the promoter shares to the IFIC Bank.
The Due Diligence Audit had fixed Rs 260 per unit promoters share price in January.
Manaslu Investment and Capital Investment – both belonging to the notorious NB Group – sold the promoter shares to the IFIC Bank.
Earlier, the
central bank in had on November 8, 2012 permitted the NB Group – that has most of its members
including Laxmi Bahadur Shrestha, Jeet Bahadur Shrestha and Jen Shrestha blacklisted by the Credit Information Bureau (CIB) – to sell the stake to the Bangladeshi
bank and repay the loans of various financial institutions including NBB and Nabil
Bank.
Sweta
Securities (Broker No 25) and Deepshikha
Dhitopatra Karobar (Broker No 38) sold the shares whereas Crystal Kanchangjunga
Securities (Broker No 50) purchased
them, according to Nepse.
Following
the sale of the stake, NB Group has to pay back the outstanding principle and
interest at the different banks including NBBL.
The central
bank had a year ago penalised Laxmi Bahadur Shrestha —then chairman of NBB —
for violating good corporate governance and borrowing from the NBB and Nepal
Sri Lanka Merchant Banking and Finance, illegally.
Today’s sale
of the promoter shares – though the first installment – has started reflecting the
investors mood as the share price of the NBB has started picking up by four times to around Rs
400 from a year ago’s Rs 120 per unit.
The bank has
listed its 20,103,890 unit of shares at the Nepse at the face value of Rs 100
per unit.
Nepal Bangladesh Bank – that witnessed a bank run some nine years ago also due to NB Group’s bad corporate governance – used to be traded at Rs 3,600 per unit before the central bank had to take over to save public deposit in November, 2006.
Nepal Bangladesh Bank – that witnessed a bank run some nine years ago also due to NB Group’s bad corporate governance – used to be traded at Rs 3,600 per unit before the central bank had to take over to save public deposit in November, 2006.
The central
bank had taken over the management of NB Bank on Sunday, November 12, 2006 and
sent a four-member committee led by Maha Prasad Adhikari to manage it, before the
committee started investigation of fraud and manipulation against the interest
of shareholders and law.
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