KATHMANDU, Feb 11: Sunrise Bank Ltd has acquired NIDC Capital Markets Ltd. The joint operation of the two institutions, following acquisition by the commercial bank, started on Friday.
Nepal Rastra Bank (NRB) Governor Chiranjibi Nepal inaugurated the joint operation of the two institutions amid a ceremony. Speaking at the function, NRB Governor Nepal said that the acquisition will make the commercial bank stronger and capable to provide merchant banking services itself.
Also speaking at the function, Motilal Dugar, the chairman of Sunrise Bank Ltd, said that the board of directors was happy to acquire the company that is promoted by five government corporations including Employees Provident Fund and Beema Samiti.
He said that the current paid-up capital of the bank, which stands at Rs 5.45 billion, will increase to Rs 7.9 billion after floating 30 percent rights issue.
The bank will meet the paid-up capital floor of Rs 8 billion by mid-July, as required by the NRB, after distributing stock dividend to its shareholders from the net profit of fiscal year 2016/17, he said.
Similarly, Surendra Thapa, Chairman of NIDC Capital Markets Ltd, said that it was better to convert into a commercial bank rather than staying as a small company.