NIC Asia Bank to Issue Right Shares in 2:1 Ratio
4th January 2026, Kathmandu
NIC Asia Bank Limited has made a significant announcement regarding its future capital structure by revealing plans to issue right shares in a 2:1 ratio. This strategic move is part of the bank’s broader capital expansion plan aimed at strengthening its financial foundation and ensuring compliance with the evolving regulatory requirements of the central bank.
NIC Asia Right Shares
The bank has officially moved forward by submitting a formal request to Nepal Rastra Bank for prior approval. This development is being closely watched by the investing public as it represents one of the largest right share offerings in recent years within the Nepalese banking sector. By doubling down on its capital base NIC Asia Bank is preparing itself for a new phase of growth and competitive positioning in the market.
UNDERSTANDING THE 2:1 RIGHT SHARE STRUCTURE
The proposed right share issuance follows a 2:1 ratio which means that for every two shares currently held by a shareholder they will be entitled to purchase one additional share at its face value. Specifically the bank intends to issue a total of 74,587,835 right shares. Since the face value of each share is set at 100 rupees the total size of this capital raise is approximately 7.45 billion rupees. This massive influx of capital will be used to bolster the bank’s primary capital and enhance its lending capacity. For existing shareholders this is an opportunity to maintain their percentage of ownership in the bank while investing at a price that is typically lower than the prevailing market rate.
CAPITAL EXPANSION AND REGULATORY COMPLIANCE
The current paid up capital of NIC Asia Bank stands at 14.91 billion rupees. Upon the successful completion of this 2:1 right issue the bank’s total paid up capital will surge significantly helping it meet the capital adequacy norms mandated by Nepal Rastra Bank. Central bank regulations often require commercial banks to maintain a specific ratio of capital against their risk weighted assets to ensure financial stability. By proactively seeking to raise 7.45 billion rupees NIC Asia Bank is demonstrating its commitment to financial prudence and its readiness to absorb potential market risks while continuing its aggressive expansion in the retail and corporate banking sectors.
THE APPROVAL PROCESS AND THE ROLE OF THE AGM
Company Secretary Mr Kamal Khadka has confirmed that the preliminary consent request is currently under review at Nepal Rastra Bank. However the process does not end with the central bank’s nod. Once the regulatory approval is secured the proposal must be presented and formally endorsed by the shareholders during the bank’s upcoming Annual General Meeting. This dual layer of approval ensures that both the regulator and the owners of the bank are in agreement with the capital expansion strategy. Only after these two major milestones are achieved will the bank proceed with fixing the book closure date and opening the application window for the right shares.
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STRATEGIC OBJECTIVES AND FUTURE BUSINESS GROWTH
NIC Asia Bank has built a reputation as one of the most aggressive and tech savvy commercial banks in Nepal. It boasts one of the largest branch networks and has been a pioneer in digital banking and financial inclusion. The additional 7.45 billion rupees in capital will provide the necessary fuel for the bank to further expand its loan portfolio and invest in cutting edge banking technology. Strengthening the capital base is not just about compliance it is about creating a buffer that allows for sustainable long term growth. Market analysts believe that this move will help the bank maintain its competitive edge as it continues to target high growth sectors in the Nepalese economy.
IMPACT ON SHAREHOLDER VALUE AND EQUITY
Right shares are often seen as a double edged sword for investors. On one hand they offer a chance to buy shares at a discount to the market price. On the other hand they require a fresh cash infusion from the shareholders and can lead to a dilution of earnings per share in the short term. Investors will be looking closely at the bank’s return on equity and its ability to effectively deploy the new capital. If the bank can maintain its profitability levels while utilizing the larger capital base it could lead to significant long term value creation. However the immediate market reaction will depend on the final terms of the issue and the perceived strength of the bank’s future earnings guidance.
DIGITAL INTEGRATION AND THE APPLICATION PROCESS
Once the right issue is officially launched shareholders will be able to apply for their entitled shares through the C-ASBA system. NIC Asia Bank has been a leader in promoting digital financial services and it is expected that the right share application process will be seamlessly integrated into the Meroshare platform. This digital approach ensures that shareholders both within Nepal and abroad can exercise their rights without the need for physical paperwork. The bank has assured its investors that it will provide clear instructions and support through its extensive branch network to ensure a smooth and transparent subscription process for all eligible participants.
CONCLUSION AND NEXT STEPS FOR INVESTORS
In conclusion the plan by NIC Asia Bank to issue 7.45 billion rupees in right shares marks a bold step in its corporate journey. By seeking a 2:1 ratio the bank is clearly signaling its intent to stay at the forefront of the banking industry. For investors the immediate next step is to wait for the formal approval from Nepal Rastra Bank and the subsequent announcement of the AGM date. Shareholders should also keep an eye on the book closure announcement as only those holding shares before that date will be eligible for the right offering. This capital raise will likely redefine the bank’s balance sheet and its future capacity for dividends and growth.
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