Nepal Rastra Bank (NRB) has decided to continue supervising the  management of the Nepal Bank Limited (NBL) for nine more months. The board meeting of the Central Bank decided recently to extend the time to look after the management of the NBL and complete its recapitalisation within that period. The management of the NBL is led by the NRB’s Director, Maheshwor Lal Shrestha. The earlier tenure expired on mid-April.

As the bank’s capital is yet to be improved, the management will be handed over to the NBL after the recapitalisation plan is completed within the extended time period, said the representatives of the Central Bank. As per the recapitalisation plan, the bank will issue 1:9.5 rights shares to its stakeholders to increase paid-up capital to Rs. 4 billion, from the current  Rs. 380 million. The country’s oldest bank is also set to sell its fixed assets to increase its capital.

The bank has also targeted to increase the public share to 49.94 percent as per the plan. Currently, government holds 41 percent stake in NBL while 50 percent is owned by public shareholders and the remaining belongs to different financial institutions.