BUTWAL, DEC 15 - In its latest effort to divest from Pashchimanchal Rural Development Bank (PRDB), the government has announced of selling 51 percent of its shares to public, its employees and other private companies.
"A formal notice inviting equity investment from the public and other private players will be issued on December 31 this year," said Sudarshan Prasad Adhikari, Executive Director of the PRDB.
Currently, the bank has 61 percent equity investment from Nepal Rastra Bank, 16.5 percent from the government and 22.5 percent from Rastriya Banijya Bank.
"Nepal Rastra Bank will retain only 10 percent of its total share investment and its remaining 51 percent shares will be floated to the private investors," said Adhikari, speaking at a press meet today.
Of the total shares being issued to public and other investors, 36 percent of the shares would be issued to the bank’s group members, 5 percent to employees and 9 percent to the micro-credit companies and public.
Member groups can buy a minimum of ten share units, while micro-credit companies would need to procure at least 1,000 share units, said he. Each share unit of the PRBD is valued at Rs 108.62.
"The bank is planning to issue shares within a month," said Adhikari, adding that it earned a net profit of Rs 1.14 million during the last fiscal year. The bank so far From the year of its establishment till the period it held its 9th AGM, the bank is said to have earned net profit of 4.3 million.
At present, the bank is operating through one regional office and 41 branches and sub-branches in the Western Development Region.
Posted on: 2003-12-16 04:23

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