Lumbini Bikas Bank Founder Share Sale Opens for Promoters
22nd February 2026, Kathmandu
The development banking sector in Nepal continues to demonstrate a high level of regulatory compliance and administrative transparency as Lumbini Bikas Bank Limited (LBBL) officially announces a new founder share sale. On February 22, 2026 (Falgun 11, 2082), the bank issued a formal public notification regarding the availability of 20,290 units of its promoter shares. This sale is being conducted under the specific guidelines set forth by the Nepal Rastra Bank (NRB) regarding the transfer of ownership within financial institutions. In accordance with these regulations, the bank is prioritizing its existing group of founder shareholders, offering them the right of first refusal before these shares can be considered for sale to the general public or external investors. This structured approach is essential for maintaining the stability of the bank’s core ownership and ensuring that those who have been part of the institution’s journey have the primary opportunity to increase their stake.
Lumbini Bikas Bank Founder Share
Lumbini Bikas Bank Limited, which operates as a leading national-level development bank with its central office at Dillibazar, Kathmandu, has established clear parameters for this transaction. The 20,290 units of founder shares are distinct from the ordinary shares traded on the Nepal Stock Exchange (NEPSE). Founder shares represent the initial capital injected by the promoters of the bank and carry significant weight in terms of voting rights and governance influence. Unlike ordinary shares, which can be traded freely by any investor with a demat account, the transfer of founder shares requires a more rigorous verification process, including a fit and proper test for the buyer and final approval from the central bank. This ensures that the individuals or entities holding significant portions of the bank’s equity are of high integrity and financial standing.
The application process for the Lumbini Bikas Bank Founder share sale is both time-sensitive and physically anchored. Existing promoter shareholders who wish to acquire these 20,290 units must submit a formal written application to the bank’s central office in Dillibazar. The bank has designated a 35-day window for this purpose, starting from the date of the notice’s publication. During this period, eligible shareholders are required to disclose their intent to purchase, the volume of shares they are interested in, and the price they are willing to pay, provided it aligns with the valuation agreed upon by the selling party and the board. This 35-day period is a critical safeguard that allows internal stakeholders to evaluate the financial health of the bank and decide if increasing their ownership aligns with their long-term investment goals.
A vital component of this announcement is the contingency plan for any shares that remain unsubscribed after the initial 35-day period. If the existing founders do not express interest or fail to apply within the deadline, the bank will move to the next phase of the sale. At that point, the 20,290 units will be made available to other individuals or institutional investors who are not currently part of the founder group. This secondary phase allows for fresh capital to enter the institution while still ensuring that the shares remain within the promoter category. This two-step process is a hallmark of corporate governance in Nepal’s banking sector, balancing the rights of existing owners with the need for market liquidity and capital flexibility.
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For the current promoters of Lumbini Bikas Bank, this sale represents a strategic opportunity to consolidate their influence. When a shareholder increases their percentage of founder shares, they often gain a stronger voice during the Annual General Meeting (AGM) and may become eligible for a seat on the Board of Directors. Investors considering this purchase will likely look at the bank’s latest financial indicators, such as its Capital Adequacy Ratio (CAR), its Net Profit trends, and its Non-Performing Loan (NPL) ratio. Lumbini Bikas Bank has recently focused on expanding its digital banking footprint and improving its rural outreach, factors that contribute to its overall market valuation and long-term earning potential.
The regulatory oversight by Nepal Rastra Bank remains the most critical factor in these transactions. The central bank monitors the concentration of shares to prevent any single individual or family from exercising undue control over a financial institution, which could pose a systemic risk. Furthermore, any promoter wishing to purchase these 20,290 units must provide a clear disclosure of their source of funds. This transparency is a key part of Nepal’s anti-money laundering (AML) efforts and ensures that the capital supporting the nation’s banking system is legitimate and stable. The 35-day application period serves as the formal window for all these regulatory and administrative checks to be initiated.
In conclusion, the Lumbini Bikas Bank Founder share sale is a routine yet significant event that highlights the transparency and structured growth of Nepal’s development banking sector. With 20,290 units now on the table, the existing promoter group has until late March 2026 to exercise their priority rights. For the bank, this process ensures a smooth transition of ownership, while for the investors, it provides a chance to deepen their commitment to one of the country’s reliable financial institutions. As the deadline of Falgun 2082 approaches, the focus remains on ensuring that the transfer is completed within the bounds of the law, fostering a secure environment for both the bank and its stakeholders.
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