KATHMANDU, NOV 16 - The management of Nepal Bank Limited (NBL) today requested the Nepal Stock Exchange (Nepse) Limited to de-list the bank from its trading roster. The management has cited its current financial position responsible for the decision.
Issuing a press statement today, the NBL has claimed that the decision would have no impact on the depositors and would not affect the functioning of the bank’s reform project. Currently, the management of the bank is under the control of Nepal Rastra Bank.
Each equity shares of the bank is currently being traded at Rs 175 in Nepse, the country’s only secondary market. There are about 15,000 ordinary shareholders of the country’s largest commercial bank.
Experts say that the management of the bank took such decision owing to its negative worth. "Share trading of a company having negative net worth is quite unusual and the decision is in response to this fact," said an expert.
KPMG, an international auditing firm, in its report on the financial situation of the bank published some years ago, had also revealed that the bank had negative net worth.
The bank is yet to submit the balance sheet for last seven years to the Nepse.
"It is quite disappointing that a company whose share value was much more than its face value has decided to de-list," said Bishnu Chapagain, president of Brokers Association of Nepal, adding that this would discourage the investors in the secondary market.Posted on: 2003-11-15 09:51

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