Kathmandu. The share capital of 35 shareholders of Karnali Development Bank has been reduced to 1 percent.
The management group formed by Nepal Rastra Bank (NRB) has decided to reduce the paid-up capital of 25 promoter shareholders and 10 ordinary shareholders to 1 percent after evaluating the assets and liabilities (DDA) of the bank. According to the management group, the paid-up capital of the bank was eroded during the DDA and the liabilities were found to be non-existent and the amount of share capital to be paid by the 35 shareholders was illegally paid.
Therefore, the share capital of the shareholders will be reduced to 1 percent as per the clause (f) and clause (h) of sub-section (1) and section 86 (h) of the Nepal Rastra Bank Act, 2058. As a result of the restructuring, 2,136,60.84 units of shares held by 25 promoter shareholders will be reduced to 21,360.61 units and 12,684.98 units of ordinary shareholders will be reduced to 126.85 units.
