Sindhu Bikash Bank AGM: Rights Share Issuance & Merger Plans Approved
24th March 2025, Kathmandu
Sindhu Bikash Bank successfully conducted its 14th and 15th Annual General Meeting (AGM) on Chaitra 8 (21 March), at Miraval Hotel & Resort, Dhulikhel. The bank had been unable to hold its AGM last year due to various reasons, so it organized both meetings together.
Sindhu Bikash Bank AGM
The meeting discussed and approved financial statements for FY 2079/80 and FY 2080/81, including the balance sheet, profit and loss statement, and cash flow details. The AGM also approved the appointment of an external auditor for the upcoming fiscal year.
Financial Statements and Auditor Appointment
The AGM approved the bank’s financial statements after thorough discussion. The financial reports for the end of FY 2079/80 and FY 2080/81 were presented along with auditor reports. The AGM also appointed Sujan Kafle & Associates, Chartered Accountants, as the external auditor for FY 2081/82. The shareholders also approved the remuneration for the auditors.
In addition, the AGM approved the appointment of Bharat Bahadur Karki as an independent director. His role will be crucial in ensuring corporate governance and compliance with regulatory guidelines.
Rights Share Issuance for Capital Growth
Nepal Rastra Bank (NRB) has set minimum paid-up capital requirements for regional development banks. The bank must maintain a minimum capital of NPR 1.20 billion. To meet this target, the AGM approved the issuance of 116% rights shares.
However, the issuance will proceed only after obtaining necessary approvals from Nepal Rastra Bank and other regulatory authorities. This step is crucial for the bank’s expansion and financial stability.
Potential Merger and Acquisition Plans
To further strengthen its market position, the AGM also approved a proposal allowing the Board of Directors to explore potential mergers and acquisitions. This decision gives the board the authority to negotiate with other banks and financial institutions to find suitable merger or acquisition opportunities.
Mergers and acquisitions can help Sindhu Bikash Bank expand its network, enhance operational efficiency, and improve financial strength. If successful, the bank will be in a stronger position to compete in Nepal’s banking sector.
Branch Network and Regional Presence
Sindhu Bikash Bank currently operates in five districts: Sindhupalchok, Kavrepalanchok, Dolakha, Makwanpur, and Chitwan. The bank serves customers through 26 branch offices across these regions.
With its growing customer base and planned capital expansion, the bank aims to increase financial access and strengthen banking services in rural and semi-urban areas.
Future Outlook
Sindhu Bikash Bank is committed to long-term growth and financial stability. The rights share issuance will increase capital, while possible mergers could expand operations. These strategic decisions align with Nepal Rastra Bank’s capital requirements and the bank’s vision for sustainable growth.
By focusing on financial expansion, regulatory compliance, and improved customer services, Sindhu Bikash Bank is preparing to strengthen its position in Nepal’s banking industry.
For more: Sindhu Bikash Bank AGM
