Sindhu Bikash Bank Concludes 14th & 15th AGM, Approves Rights Share Issuance and Merger Plans

Sindhu Bikash Bank Limited successfully held its 14th and 15th Annual General Meeting (AGM) on 2081/12/08 (March 22, 2025) at Mirabel Resort Hotel, Dhulikhel, Kavrepalanchok. During the meeting, a special resolution was discussed regarding issuing rights shares to meet the minimum paid-up capital requirement of 120 crores, as per Nepal Rastra Bank's (NRB) directives to upgrade the bank to national-level development bank.

Initially, the proposal suggested issuing rights shares in a 2:1 ratio (one rights share for every two existing shares). However, after deliberation, shareholders approved an alternative 1:1.16 ratio (1.16 rights shares for each existing share), subject to NRB's approval. The AGM granted the Board of Directors full authority to obtain necessary regulatory approvals and proceed with the rights issuance accordingly.

Additionally, under Special Proposal No. 2, the AGM unanimously approved granting full authority to the Board to explore potential mergers or acquisitions with other suitable banks and financial institutions. This includes appointing a recognized valuer for the Due Diligence Audit (DDA), determining valuation fees, preparing a Memorandum of Understanding (MoU), and carrying out all necessary processes related to mergers or acquisitions. The decision empowers the Board to take appropriate steps to facilitate the bank’s strategic expansion.