Central Bank to facilitate BFIs merger process

Kathmandu, January 6 : Nepal Rastra Bank has adopted a new policy in a way to facilitate the process for merger between the financial institutions.
Issuing a circular on Saturday (January 5), the central bank has stated that it would moderate and facilitate the financial institutions for merger process or their up-gradation as per the Bank and Financial Institutions Act 2073 BS.
In the circular, the central bank has further stated that it would inform Office of the Company Registrar, Securities Board of Nepal and Nepal Stock Exchange to support the merger process.
According to the new policy, if the financial institutions in provincial levels wanted merger or or upgrade, the standard volume of paid-up capital and total capital should be met as indicated by the central bank.
However other managerial aspects involved in the merger process would be exempted, the policy noted.
The directive further urged the financial institutions failing to meet capital requirements as per the NRB regulations and are bearing loss for five consecutive years to go for merger process.
This week the banks and financial institutions dominated the security market in terms of share trading. Nepal Bank Limited topped the top 10 companies trading shares with the transaction of 302 shares. Likewise, Nepal Credit and Commerce Bank remained second with the trading of 247 shares followed by Janata Bank with the trading of 154 shares. Prabhu Bank traded 142 shares, while NMB Bnak 140, Mega Bank 129 and Global IME Bank 102.
Likewise, Api Power Company witnessed the trading of 97 shares, while National Life Insurance (NLI) 93 and Nepal Life Insurance 90.
Nepal Telecommunication Company topped the market capitalization list. Other top 10 companies dominating the market capitalization were Nepal Investment Bank, Nabil Bank, Standard Chartered Bank, the NLI, Everest Bank, Himalayan Bank, NIC Asia Ban, Nepal SBI Bank and NMB Bank.
According to the NEPSE, 1.8 million initial public offering (IPO) shares of Chautari Laghubitta Bittiya Sanstha Ltd were listed this week. RSS