Narayani Development Bank Calls AGM for Kartik 27, to Pass Right Shares and Merger Proposals

Narayani Development Bank Limited has called its 23rd and 24th Annual General Meeting for Kartik 27. The bank's board of directors meeting held on Asoj 23 decided to convene the AGM. The meeting will begin at 11 AM at Smart Garden and Restaurant, Basanta Chowk, Bharatpur-12, Chitwan.

The AGM will table two major proposals — issuing right shares for capital growth and merging or acquiring other suitable banks and financial institutions.

The bank has proposed issuing right shares to raise the necessary funds to maintain the minimum paid-up capital prescribed by the regulatory body. After completing the auction process for the unsold shares of the previously issued right shares, a proposal will be presented at the AGM to authorize the board of directors to proceed with issuing additional right shares as needed. For this, approval must be obtained from Nepal Rastra Bank, Nepal Securities Board, and other relevant authorities.

Similarly, the bank plans to pursue the possibility of merging with or acquiring other suitable banks and financial institutions. A proposal has been put forward to authorize the board of directors to identify suitable institutions and investors, hold discussions and enter into agreements, conduct valuation of assets and liabilities, and obtain necessary regulatory approvals. The option of bringing in a strategic partner or new investors to enhance the bank's capital, business, and institutional capacity has also been kept open.

The AGM also includes other agendas:

• Discussing and approving the annual report and financial statements for fiscal years 2080/81 and 2081/82
• Appointing auditors and approving their remuneration, and appointing new auditors
• Approving the appointment of a person appointed by the board of directors to a vacant director position

If these proposals are passed, significant changes are expected in the bank's capital structure and institutional capacity.