Muktinath Bikas Bank, a well-performing development bank in Nepal, is preparing to upgrade itself into a commercial bank. Known for its strong financial results and brand value, the bank is now ready to take a bigger step in the banking sector.
The bank has announced that it will hold its 19th annual general meeting on Kartik 15. In this meeting, a special proposal will be discussed to officially begin the process of becoming a commercial bank.
Along with this, shareholders can expect good news. The bank has proposed a 13.53% bonus share from last year’s profit. If approved, the bank’s paid-up capital will rise above 8 billion rupees.
This move is supported by earlier steps as well. Last year, Muktinath issued irredeemable preference shares worth 1 billion rupees. With this, the bank’s total issued and paid-up capital has already reached 9.03 billion rupees. According to Nepal Rastra Bank, a development bank needs at least 8 billion rupees in paid-up capital to qualify for commercial status.
The special proposal clearly states that after meeting this requirement, the board of directors will be given the authority to move forward with the upgrade process.
The annual meeting will also review the perks and benefits of the chairman and other directors. At the same time, the agenda includes discussions about possible mergers or acquisitions.
By aiming to become a commercial bank, Muktinath shows its strategy to grow further. The bank is also open to merging with smaller institutions, which could help it expand and strengthen its presence in the market.
