Citizens’ Bank to Issue Right Shares

June 3: Citizens’ Bank International is issuing right shares in proportion of 10: 5.5 from June 16 to July 24 for its existing shareholders. The bank is issuing 16.85 million units of shares priced at Rs 100. The existing shareholders can buy a share at Rs 100 per unit that cost Rs 819 in the secondary market.

According to the bank, the shareowners and the share investors who purchase the bank’s share till June 5 can apply for the right shares. Interested shareholders can submit the purchase application from Global IME Capital and all the branches of Citizens’ Bank.

Meanwhile, the paid-up capital of the bank will totalled Rs 4.75 billion after the right share issuance. In order to meet the required paid-up capital as per NRB directive, the bank is planning to issue right shares and bonus shares for next two consecutive years. The bank has already acquired Premier Finance to meet the paid-up capital.

ICRA Nepal has granted Grade 3 rating for the right share issuance. The bank predicts to earn Rs 926.6 million profit in the current FY. It has expected net worth per share 128 times.  Similarly, the bank has earned net profit of Rs 728.8 million in the third quarter of current FY. Operating profit and net interest income of the bank has increased by 33.74 percent and 23 percent. Moreover, the bank has been able to recover Rs 255.2 million bad debt of the last FY.