Kathmandu. The share capital of the shareholders of Karnali Development Bank has been reduced. Nepal Rastra Bank has decided to reduce the share capital of 35 shareholders of the troubled Karnali Development Bank.
The Nepal Rastra Bank (NRB) has decided to reduce its share capital as part of the restructuring process of the bank after the bank’s paid-up capital was depleted and its assets could not sustain its liabilities.
According to the Nepal Rastra Bank, the share capital of the shareholders has been reduced to one percent as per the Nepal Rastra Bank Act, 2058 BS. The central bank has reduced the share capital of 25 promoters and 10 ordinary shareholders.
Accordingly, the total 2,
136,60.84 units of shares of the promoter shareholders have been reduced to 21,360.61 units.
Similarly, the total 12,684.98 units of shares of the 10 ordinary shareholders will be reduced to 126.85 units.
The High Court, Tulsipur, has scheduled a hearing at 10:00 am on November 22 for the process of deducting the share capital and documenting it at the Office of the Company Registrar.
