Sindhu Bikas Bank to Issue 116% Right Share to Shareholders

Sindhu Bikas Bank Limited has announced the issuance of 116% rights shares to its existing shareholders. The decision was finalized during the bank’s 14th and 15th Annual General Meetings (AGM) held on 2081/12/08 (March 22, 2025) at Mirabel Resort Hotel, Dhulikhel.

Originally proposed at a 2:1 ratio, the rights share plan was revised and approved at a 1:1.16 ratio, meaning shareholders will receive 1.16 rights shares for every existing share, subject to final approval from Nepal Rastra Bank (NRB). This move aims to raise the bank’s paid-up capital to Rs. 1.20 Arba, aligning with NRB’s requirements for upgrading to a national-level development bank.

The AGM also passed a special resolution granting full authority to the Board of Directors to move forward with the rights share issuance, including obtaining necessary approvals from regulatory bodies.

In addition to the rights offering, the shareholders unanimously approved a merger/acquisition plan, empowering the Board to seek potential partners among banks and financial institutions. The Board is authorized to conduct a Due Diligence Audit (DDA), appoint valuers, set valuation fees, and draft a Memorandum of Understanding (MoU) as part of the strategic expansion initiative.