Himalayan Bank Founder Shares Sale Notice
10th February 2026, Kathmandu
Himalayan Bank Limited (HBL) has officially opened the sale of 1,282,588 units of founder shares. The announcement, made on February 10, 2026 (Magh 28, 2082), follows the bank’s second-quarter financial disclosure and reflects ongoing adjustments to its ownership structure following the Civil Bank acquisition.
Himalayan Bank Founder Shares
While the bank faces operational challenges, including a sharp rise in non-performing loans, its large capital base and significant promoter interest continue to make these share transactions a focal point for the Nepalese banking sector.
Transaction Overview and Application Process
This sale is currently in its primary “Promoter-Only” phase. According to the Nepal Rastra Bank’s unified directives, founder shares must be offered to the existing internal group before external parties can participate.
Total Share Units: 1,282,588 units
Target Audience: Current HBL Founder Shareholders
Deadline for Priority: Applications must be received by March 17, 2026 (35 days)
Submission Point: Legal and Share Department, Central Office, Kamaladi, Kathmandu
Financial Context: Q2 2082/83 Performance
The timing of this share sale coincides with a difficult financial report for the bank. As of Poush end 2082, Himalayan Bank reported a net profit of NPR 1.29 billion, which represents a 14.94 percent decline compared to the same period in the previous year.
Key Financial Stress Indicators
The bank is currently navigating a post-merger recovery phase characterized by high bad debts and shrinking margins:
Non-Performing Loan (NPL) Ratio: Has surged to 7.96 percent, up from 4.98 percent. This is currently one of the highest bad-debt ratios among commercial banks in Nepal.
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Distributable Profit: Stands at a negative NPR 9.07 billion, effectively placing the bank in a “dividend drought” for the foreseeable future until bad loans are recovered or written off.
Earnings Per Share (EPS): Dropped to NPR 11.45.
Net Worth Per Share: Remains relatively stable at NPR 174.23.
The Strategic Shift: Habib Bank and Beyond
A major driver of recent share movements in Himalayan Bank has been the exit of Pakistan-based Habib Bank Limited. In late 2025, Habib Bank agreed to sell its entire 12.93 percent stake to National Life Insurance Company.
This transition from a foreign partner to a domestic institutional investor like National Life marks a significant shift in the bank’s governance. The current offering of 1.28 million units is part of a broader trend where founding groups are rebalancing their portfolios as the bank works through its high impairment charges and capital efficiency issues.
What Should Investors Monitor?
While the general public cannot apply for these 1,282,588 shares yet, the outcome of this 35-day window is critical for the bank’s future:
Absorption Rate: If the current promoters do not buy these shares, it signals a lack of internal confidence in the recovery timeline.
Public Auction: If unsold, these shares will be auctioned to the general public, often at a floor price significantly lower than the market price of HBL public shares (currently near NPR 188).
Recovery Crisis: The bank’s primary focus remains on reducing the NPL from 7.96 percent back toward the regulatory threshold of 5 percent.
Conclusion
The sale of 1,282,588 Himalayan Bank Founder Shares is a high-stakes move during a period of structural reform for the bank. With a negative distributable profit of NPR 9 billion, the bank is strictly in “preservation mode.” The successful internal transfer of these shares would provide much-needed ownership stability as HBL attempts to manage its toxic loan portfolio and integrate the remaining Civil Bank assets.
For More: Himalayan Bank Founder Shares
