Chilime allots 960,000 shares to project-affected locals

The Chilime Hydropower Company on Wednesday allotted 960,000 ordinary shares to 31,123 applicants residing in the area affected by the hydropower project. Chilime had offered 10 percent of its total share issue to the local residents through an initial public offering (IPO). Of the total shares issued, residents of three village development committees (VDCs) subscribed to 180,000 shares at the par value of Rs 100 per share and 156,000 shares at the premium value of Rs 237.70 per share. The company had issued the remaining 624,000 shares to residents of 15 other VDCs. The company had allotted the shares in odd lots to issue shares to all the applicants.

Source:
ekantipur

Rastriya Banijya Bank & NIDC all set to merge

At a time when private banks and financial institutions (BFIs) are engaged in homework for the proposed merger among them, the government is planning to merge two state-owned financial institutions. Work is on to merge the Rastriya Banijya Bank (RBB) and Nepal Industrial Development Corporation (NIDC) within this fiscal year. The RBB-NIDC merger is on line with the central bank's suggestion that came around three months ago. The plan is an alternative mooted by the government instead of injecting capital in the RBB.

With the government's reluctance to inject fresh capital in the RBB, the merger is now being taken as a measure to turn the bank's capital from negative to positive. Currently, the RBB's net worth is negative by Rs 10 billion. The government has been reluctant to inject capital in the RBB saying that the budget for development purposes cannot be used to rescue a bank. Addressing the RBB's 46th anniversary programme, Finance Minister Surendra Pandey and Nepal Rastra Bank (NRB) Governor Yubaraj Khatiwada on Monday suggested the RBB go for merger.

Despite implementation of the financial sector reform programme for eight years, the RBB has failed to turn into a healthy bank. As per the government plan, RBB's net worth can be turned positive by selling the assets of the NIDC if both institutions are merged. The NIDC has plots of land in Kathmandu, Pokhara, Biratnagar, Bharatpur, Mahendra Nagar, Surkhet and Dhangadi, whose estimated worth is Rs 10 billion. If the RBB-NIDC merger happens, it will be the first instance of government-owned financial institutions getting merged. Unlike the RBB, the NIDC's financial health is gradually improving with its net worth that was negative by Rs 1.22 billion in 2006 turning positive by Rs 900 million by the end of the last fiscal year. "NIDC's status has improved as a result of recovery of loans and sales of shares in another bank," said a senior NIDC official. The NIDC that has paid up capital of Rs 410 million had earned profits of Rs 450 million last fiscal year. The NIDC recently submitted its audit report of the past eight years to the NRB.

With the government having a majority stake in the NIDC, it won't have hiccups in getting the merger decision endorsed by the annual general meeting (AGM) of the NIDC. As per laws, the AGM will have to endorse the merger decision. The government has given priority to mergers through the budget for the current fiscal year. However, RBB's employee unions are not positive about the proposed merger plan. During the 46th anniversary of the RBB, representatives of employees unions had expressed reservations on the merger plan.

The NIDC has also initiated the voluntary retirement scheme (VRS) to pave way for a smooth adjustment of employees after the merger. "The VRS has been designed to give more than the normal benefits to employees retiring," said a source at the NIDC. The NDIC employees, however, have not shown interest in the VRS till now. The deadline to apply for VRS is Jan. 31. There are 49 permanent employees in the NIDC and the VRS is targeted at 33 of them who have served over 15 years at the NIDC. The government will opt for compulsory retirement scheme if the employees don't leave the NIDC under the VRS. "Such a provision can be implemented for those who have crossed 20 years of service in the NIDC," said the source.

The central bank is also planning to give certain incentives for merger while reviewing the monetary policy in February. The budget has already announced changing the existing provision of taxing assets and liabilities as disposal after mergers, making it non-taxable to encourage mergers amongst the BFIs. Of late, more BFIs are in the process of merging. Banks and finance companies promoted by the NB group are in the process of merger. They include Nepal Bangladesh Bank and Nepal Credit and Commerce Bank. Birgunj Finance of Birgunj and Himchuli Finance of Pokhara also recently signed an agreement for merger.

Source:
ekantipur

New ATMs -Bank of Kathmandu

Bank of Kathmandu (BoK) has installed ATMs at Civil Mall in Sundhara and Bluebird Mall in Tripueshwor. "With the addition, the bank now has a total of 47 ATMs, 23 inside Kathmandu Valley and 24 outside Kathmandu Valley," said the bank.

Source:
tht

Citizens Bank provides Cricket Kit

Citizens Bank International has provided Nepal Cricket Association-Bardiya with cricket kit and dress as part of its corporate social responsibility (CSR). The bank that provides services to its 90,000 customers through its 26 branches across 12 zones of Nepal has plans to extend its service to all 14 zones of Nepal by the end of the current fiscal year, it said in a press release.

Source:
tht

Nabil agree to Adopt-A-School

Nabil Bank signed an agreement January 21 with Save the Children, Dalit NGO Coordination Committee and School Management Committee of Ratri Primary School in Dhaunauri VDC ¿ 9, Dang under the Adopt-A-School programme of Save the Children. Under the partnership, Nabil Bank will support the infrastructure development of the school which will include constructing two class rooms for the school. "The agreement which will be valid for one year will see the bank directly investing Rs 500,000 in Ratri Primary School to ensure children have a better environment to learn," says bank CEO Amrit Shrestha.

Source:
tht

Narayani National Finance 10.5% dividend

Narayani National Finance has decided to distribute 10.5 per cent dividend to its shareholders in its AGM. The finance company has earned a net profit of Rs 114.4 million in the fiscal year 2009-10. The finance company has been able to reduce its Non Performing Assets to 1 per cent. The company has 10 branches across Nepal.

Source:
tht

Nepal Express Finance Ltd 10% bonus shares

Nepal Express Finance Ltd has decided to distribute 10 per cent bonus shares to its shareholders in its AGM on Friday. The finance company has collected 40 per cent more deposits to Rs 492.4 million in 2009-10. The company has floated loans to the tune of Rs 407.3 million, which is 6 per cent higher compared to the previous fiscal year. The company also earned a net profit of Rs 26.5 million.

Source:
tht

Merger : Nepal Bangladesh Bank & Nepal Sri Lanka Merchant Bank

After four years of twists and turns, the merger between Nepal Bangladesh Bank Limited (NBBL) and Nepal Sri Lanka Merchant Bank Limited (NSLMB) is finally taking place. The Nepal Rastra Bank gave the go-ahead for the merger last week. In the event of the merger taking place, it will be the first in 2011 and the fourth in the country's banking history. About three weeks ago, the central bank had disqualified the institutions' merger announcement, saying that they did not follow due procedures as per the as per the Bank and Financial Institution Act (BAFIA) prior to announcing the merger.

"The merger will be effective from Jan. 23," said Prithvi Raj Ligal, chairman of the merger committee formed by the two financial institutions. The central bank will issue a notice of merger after receiving request from the institutions. NRB officials, however, said that they were yet to receive a formal letter from the institutions, requesting the central bank to issue a merger notice. NRB has told the institutions to complete the merger process within next 90 days.

This will be the second merger of the financial institutions promoted by the NB group. NBBL and NB Finance had merged four years ago. Other mergers that took place in the country are between Laxmi Bank and Hisef Finance¿both promoted by Khetan Group¿and Narayani Finance and National Finance. "The NBBL-NSLMB merger will encourage other financial institutions to go for merger," said Ligal, who is also the chairman of Nepal Credit and Commerce Bank. The government and the central bank have given high priority to mergers of bank and financial institutions (BFIs). The government has changed the existing provision of taxing assets and liabilities as disposal after mergers, making it non-taxable. The central bank is also mulling facilities to be provided to encourage mergers.

Following the NBL-NSLMB merger, the paid-up capital of NBB will surpass Rs 2 billion mark, a requirement which banks should meet by fiscal year 2012-13. Currently, NBB has a paid-up capital of Rs 1.86 billion and the paid-up capital of NSLMB is Rs 300 million. However, NBBL has to bear the liabilities of NSLMB as per the BAFIA. NSLMB owes Rs 60 million to Madhyamanchal Grameen Bikas Bank and Rs 149.2 to the Nepal Army.

"We decided to allow the merger to save NSLMB form collapse," said a senior NRB official. "The merger may affect the financial situation of NBBL. However, in the event of NSLMB's collapse, depositors' confidence in the financial system, which is already coping with acute liquidity crisis, would weaken." After the merger, the head office and branches of NSLMB will be converted into NBL branches. NSLMB staff will be assimilated to the NBB staff.

Boards of both the institutions have agreed to appoint NSLMB staff in posts two levels lower than those they currently hold. However, some of the NBBL employees are opposing this provision, saying that the NBBL board had assured them that NSLMB staff would be appointed in posts four levels lower than those they currently hold. "The management has assured us in writing," said Rabin Shakya, president of Employees Union of NBBL. On the other hand, NSLMB employees are saying that the appointments have to be made according the decision taken by the boards of the two institutions. "If not done as per the boards' decision, it will be our humiliation," said a senior NSLMB officer. The NBBL will not be changed even after the merger. "NRB did not allow us to change the board as per the changed shares structure," said Laxmi Bahadur Shrestha, director of NBBL

Source:
ekantipur

Premier Finance Company's 15% dividend

Premier Finance Company has approved 15 per cent bonus share and seven per cent cash dividend to its share holders from the profit of fiscal year 2009-10 in the 14th AGM of bank held on Wednesday. The company has increased its profit to 109.58 per cent compared to last fiscal. According to chairman of the company Bharat Narsingh Joshi, after 15 per cent bonus share the company's paid up capital will be Rs 120.66 million. It is issuing 2:1 rights shares to increase the paid up capital. It has collected the deposit worth Rs 1.03 billion and floated Rs 1.02 billion loan by the end of last fiscal year.

Source:
tht

Janaki Finance Company earns Rs 46 million

Janaki Finance Company has been able to earn Rs 46 million in the fiscal year 2009-10. This Janakpur-based finance company collected deposits worth Rs 6.2 billion and floated loans worth Rs 6.5 billion in the same period. The finance company has also made a payment of Rs 19 million as tax to the government, making it one of highest tax payers in the district.

Source:
tht

New branch of Prime Commercial Bank

Prime Commercial Bank has opened a new branch at Kalimati in Kathmandu. This branch is the bank's 19th branch. The bank said it has plans to widen its network by opening more branches in the near future.

Source:
tht

Standard Finance 5.5% cash dividend

Standard Finance has decided in its AGM to distribute 5.5 per cent cash dividend to its shareholders on Tuesday. The bank had earned Rs 57 million as net profit in the fiscal year 2009-10. The finance company provides all kinds of modern banking services to its customers including ATM, SMS banking, E-banking, 365 days banking, any branch banking among others.

Source:
tht

New NIC Bank branches

NIC Bank opened four new branches at New Baneshwor, Thankot, Thamel and Maharajgunj in Kathmandu on Tuesday, taking the number of branches to 32. The bank has 28 ATMs in the country. The new branches will provide a full range of products and services including loans, deposits, card payments, Internet and mobile banking. The bank recently distributed cash dividend at the rate of 26.32 per cent, the highest dividend, among banks for 2009-10, the bank claimed.

Source:
tht

Rastriya Banijya Bank staff may not get bonus

The staff of Rastriya Banijya Bank (RBB) may not get a bonus this year from the profit the bank made in fiscal 2008-09 as the Commission for Investigation of Abuse of Authority (CIAA) has barred public enterprises (PEs) with a cumulative loss from doing so. RBB had sent a proposal to the Finance Ministry recently asking for its approval to distribute bonuses worth Rs 182.4 million to its staff. The bank had earned a profit of a little over Rs 2 billon in 2008-09. It has been paying a bonus to its staff since the last five years from its annual profits. The bank's net worth, however, is still negative by Rs 10 billion.

"No PE with a cumulative loss can distribute bonuses as per our direction," said CIAA spokesperson Ishwori Poudyal. "PEs whose capital has eroded cannot claim a bonus even though they may have been making a profit operationally for a few years." On July 31, the CIAA had directed the chief secretary and other concerned government agencies not to allow distribution of bonuses in PEs with a cumulative loss. Earlier, the anti-graft body had ruled likewise when Nepal Oil Corporation (NOC) had decided to distribute Rs 198.8 million as bonus to its staff for fiscal 2008-09 from its profit of Rs. 3.31 billion. Despite the profit, NOC was still in the red by Rs. 7.92 billion, according to the Finance Ministry. According to the annual performance review of PEs prepared by the Finance Ministry, 18 out of 36 PEs incurred losses in fiscal 2008-09.

However, RBB chief executive officer Janardan Acharya said that RBB and NOC should not be seen in the same light. "Unlike NOC, we have been providing dividends and revenue to the government and we have not taken any financial support from the government to make this impressive profit," added Acharya. He argued that the new "energetic" staff should not be punished for the mistakes made by past employees. Acharya also warned that the bank's staff may lose enthusiasm to work resulting in a decline in profits next year. The Bonus Act allows private firms to pay a bonus amounting to 10 percent of the net profit for the year while the limit for public enterprises is 8 percent. Terming the Bonus Act impractical, the government has already moved to amend it while banning distribution of bonuses until the cumulative loss is recovered.

"The Bonus Act allows RBB to pay a bonus; but in practice and in principle, it cannot do so as NOC has been prevented from paying extra money to its staff," said Tanka Mani Sharma, joint secretary of the Finance Ministry. He, however, added that he could not confirm whether RBB would be allowed to distribute bonuses until the government takes a definite decision in this regard.

Source:
ekantipur

NMB Bank Education Plan

NMB Bank launched Education Plan ¿ a recurring deposit account ¿ especially for children. It offers a fixed maturity period of three to 15 years at a fixed interest rate with a minimum monthly deposit of Rs 500. Parents can open the account for their children as young as one day to 12 years. "Educating children is a major expense for parents," said Upendra Paudyal CEO of the bank that also unveiled its new corporate campaign called `With you Always'.

Source:
tht

Banks resume gold import with 100 kg

The gold import has finally resumed after four-month long halt as the two commercial banks imported 100 kg of gold to supply in the domestic market. "NIC Bank and Nabil Bank have imported 50 kg each to supply in the Bagmati zone," said an official associated with gold trade. "Laxmi Bank is also in the line to bring the gold," he informed. The imported amount of gold will be able to provide for the bullion traders of Bagmati zone for 11 days as per the designated quota. "The daily demand for gold in Bagmati zone exceeds 20 kg a day in the off season. Therefore, this amount of gold will not be enough," he said, adding that it will only increase the illegal trafficking of the gold from India.

The ban imposed on gold import was formally lifted after three and half months ¿last month after the central bank issued guidelines to the commercial banks and the traders regarding conditions for gold import. The central bank has fixed 15 kg per day as the quota for gold import solely through authorised commercial banks. However, the gold traders are lobbying for the free import under the provisions of Open General License (OGL) so that there will not be any quota restriction regarding the import. Likewise, the traders are still voicing their discontent with the provisions regarding the distribution among the different gold and silver trading associations.

"The new provisions will create some more disputes among the traders as the quota is so small no dealer will be satisfied with the amount they will get," he said. The bullion traders have been asserting that the distribution will only cause another dispute in the market like one in August 2010 which kept the jewellery market shut for a week. To control escalating Balance of Payments (BoP) deficit caused by excessive gold import, the government had increased the customs duty in March to match with that of India's through an ordinance which expired in September, stopping the supply of fresh gold and silver in the domestic market. The budget of this year then determined the new customs rate for gold at Rs 1,000 for 10 gm and Rs 2,400 for a kg of silver.

Source:
tht

Bankers brief PM on liquidity scene

Leading bankers of the country today met caretaker Prime Minister Madhav Kumar Nepal and informed him about problems being faced by the banking sector including liquidity crunch and their investments in the crusher industry. The commercial banks are currently facing liquidity crunch due to a delayed budget coupled with diversion of deposits to other financial institutions offering higher interest rates. According to the central bank, in the first four months of current fiscal year (mid-November), total government spending increased by only 1.8 per cent to Rs 51.54 billion, compared to an increase of 36.5 per cent in the same period last year, creating tight liquidity situation in the market.

Nepal Rastra Bank (NRB) data reveals that the deposits, which stood at around Rs 620 billion in mid-July 2010, is currently at around Rs 623 billion. The government spending has dropped squeezing the liquidity in the market due to a delayed budget. The government spending creates ease of liquidity in the market as the money pumped in by the government attracts private sector money too.

Due to liquidity crunch, the Credit to Deposit (CD) ratio of commercial banks has also gone up from the central bank-fixed ratio of 85 per cent. Not only the much-delayed budget but also the higher interest rates offered by finance companies and cooperatives ¿ that are offering over 15 per cent interest ¿ have squeezed liquidity from the commercial banks.

According to the central bank, the deposit mobilisation of commercial banks has declined by Rs 4.5 billion during the first four months of 2010-11 against a growth of Rs 19 billion in the same period last year. The central bank attributed the decline in deposit mobilisation by commercial banks to the diversion of deposits to other financial institutions on account of higher interest rate offered by them. The bankers also requested the Prime Minister to bring a clear policy about the crusher industry. "Commercial banks have given Rs 6 billion in loans to the crusher industry. The total loan is at Rs 10 billion if lending from other financial institutions is included, said president of Nepal Bankers Association (NBA) Sashin Joshi.

Source:
tht

Himalayan Bank's expansion plans

Himalayan Bank plans to install 10 ATM terminals and three branches in the next seven months of the current fiscal year. The bank has already established three branches with an ATM each at Gorkha and at Satdobato and Kalanki in Kathmandu. Currently, the bank has 33 branches and 53 ATM terminals across the country. The bank further plans to issue EMV debit and credit cards soon. Similarly, the 18th annual general meeting (AGM) of Himalayan Bank on Wednesday endorsed issuing 11.84 percent cash dividend and 25 percent bonus shares to its shareholders. Following the distribution of 25 percent bonus amounting to Rs 783.78 million, the bank's paid-up capital will reach Rs 2 billion.

The bank posted a net profit of Rs 508.79 million in 2009-10. During the review period, the bank's deposit base and lending portfolio amounted to Rs 37.61 billion and Rs 29.12 billion respectively. The deposit base and lending portfolio have witnessed a growth of 8.44 percent and 14.12 percent respectively against the previous fiscal year. However, the bank's non-performing loans in the review period have gone up to 3.52 percent, which it plans to lower to 3 percent during 2010-11. Meanwhile, the deposit base and lending portfolio have climbed to Rs 39.46 billion and Rs 32.53 billion respectively in the first five months of the current fiscal year. Likewise, the operating profit reached Rs 574.85 million.

Source:
ekantipur

Commercial banks in Pokhara losing deposits

As the development banks and other financial institutions are introducing different schemes, including high interest rates, to lure clients, deposits in the commercial banks have declined, according to the bankers. "The deposit in our bank has gone down by some 30 pc recently," said a banker, "If the unhealthy competition like this continues, the problem can be even bigger." He told Republica that commercial banks have been seeing drop in deposits collections after development banks and began increasing their interest rates after the liquidity crunch hit banking sector last year. At present, banks under ´B´ category (development banks) have been attracting more deposits than the ´A´ category banks (commercial banks).

Deposit collected by commercial banks is only 49.17 percent of the total deposit collection till mid-October of the current fiscal year. Commercial banks had collected 55.88 percent of the total deposit during the same period last year. According to Nepal Rastra Bank´s Pokhara regional office, commercial banks have lost deposits by some 7 percent over the period of a year. Development banks and financial institutions, however, raised their deposits by 6 percent and 1 percent respectively during the period.

Development banks and financial institutions have been aggressively expanding their network in Pokhara in recent years. Thirteen development banks and 14 finance companies have opened their branch in Pokhara in the last one year. Only six commercial banks opened their branches in Pokhara during the period. The bankers said commercial banks have been losing deposit because of their failure to compete with development banks and financial institutions by involving in unhealthy practices like raising interest rates and offering discounts to clients in account operation and loan flow.

According to Nepal Rastra Bank, deposit collection of development banks till mid-October in the last fiscal year was 23 pc of the total deposit collection. This has climbed to 29 pc during the same period in the current fiscal year. Similarly, financial institutions have also managed to increase their deposits to 21 percent of the total deposit collection. Banks and financial institutions in Pokhara have mobilized Rs 39.04 billion in deposits till mid-October of the current fiscal year.

Source:
myrepublica

Banks to limit savings interest at 4-6pc

Bankers under strong pressure to jack up savings interest rates have agreed to limit interest returns on savings deposits at 6 percent -- a move which goes against the spirit of open market policy. They have also concurred to set the minimum rate of returns on savings deposit at 4 percent, which is lower than what the depositors were expecting, following the central bank´s latest directive that asked banks and financial institutions (BFIs) to limit the gap between different savings rates to 2 percent or less. "A gentleman´s agreement has been reached to limit the savings rate between 4 and 6 percent," said a member of Nepal Bankers´ Association (NBA).

New commercial banks, however, have been given permission to fix higher rate by a margin of as much as 1.5 percentage point, he said, adding that the NBA will soon hold a meeting of chief executives of all 30 banks this week to formalize its implementation. NBA in May had also enforced a similar decision, whereby banks are still limiting interest rates on fixed deposits at 12 percent. Once the new decision comes into effect, depositors who were already enjoying as much as 10.5 percent annual interest returns on savings will find their return drop to 6 percent.

This will also reduce the prospect of salary account holders and other accounts holders enjoying far better returns than now. So far, the banks were providing just 2 percent annual interest returns to such accounts holders. The bankers said their agreement to limit the savings rate had become necessary mainly to avoid unhealthy competition among banks to attract additional deposits. If unstopped, they said it will ultimately drag entire banking industry toward disaster. "Competing on savings rates makes no sense, especially if it is already driving away the borrowers. Besides, our economy is also not productive and competitive enough to cope with higher lending rates," said the NBA official.

As for the rising lending rates, bankers said they will study the possibility of its downward revising only after studying the impact of the new decision. When asked to comment, NBA President Sashin Joshi said, "We had discussions on how to implement the central bank´s new directives on savings rate". He refused to make further comments on the agreement. Some of the bankers, however, noted that the new move could be risky particularly given the latest trend of customers becoming more interest sensitive and their competitors like development banks and financial institutions offering as much as 13.5 percent.

The decision to cap the fixed deposit rate at 12 percent has already caused the banks lose deposits of some Rs 4 billion to the financial institutions. Nepal Bank Limited and Ratriya Banijya Bank -- two public sector banks that offer least savings returns -- said their deposits have dropped by Rs 4 billion and Rs 5 billion respectively over the last five-and-a-half months, as BFIs offering higher returns stole their customers.

Source:
myrepublica

Century's capital structure ratio changed to 54:46

The proposed Century Commercial Bank on Sunday changed its capital structure to a ratio of 54:46 for promoters and the general public from the 70:30 ratio proposed earlier through a special general meeting (SGM). The bank had to change its capital structure as 132 of its proposed 568 promoters failed to put up the pledged money. It means the promoters will have to deposit Rs 1.08 billion instead of Rs 1.4 billion as promised earlier. The general public will put up the rest to meet the required paid-up capital of Rs 2 billion when the bank makes an initial public offering.

"We have changed the capital structure as some shareholders could not meet their commitments," said bank chairman Pradip Man Vaidya. "Due to the unfavourable economic conditions of the country, our promoters could not deposit the committed amount." Century officials have said that big promoters involved in real estate trading had failed to fulfil their commitments. As Century had already received a letter of intent (LoI) for establishment on the basis of a capital structure of 70:30, the central bank had told it to hold a special general meeting to change it. The bank was also rushed to get its operating license as it has to be done within a year from the date of receiving the LoI as per the licensing policy of NRB. Century had received its LoI on Jan. 24, 2010.

After the central bank refused to entertain the presence of two persons in the promoters group as their family members were also involved in another bank as key promoters, pressure had mounted on Century to meet the capital requirement. There were some promoters who could not put up the promised money although they had deposited a certain amount. They were allotted shares as per the revised commitment with the surplus shares being forfeited and included in the general public's quota or distributed among other promoters.

The SGM also endorsed the proposal to reduce the number of promoters groups to four from the existing six so that four directors could be elected to the eight-member board. The bank had to reduce the number of promoters groups because their shares in the total capital structure had decreased. As per the revised board structure, there will be representation of three persons from the public. One will sit on the board from the category of impendent professional board members. Earlier, promoters were categorised into six groups so that six directors could be elected to the nine-member board. Only two people could be elected from the general public. Most of the promoters addressing the function were against the categorisation of shareholders. However, the SGM endorsed the proposal of keeping four groups for now and reviewing the categorisation system at the first annual general meeting after it starts operations. Those who were against the categorisation system said that it could promote groupism.

"The main objective of categorization was to collect capital, but it will be better if the bank dissolves it," said Nirmal Pradhan, a promoter. However, chairman Vaidya defended categorization saying that its absence could result in tussles among the promoters on various issues in the future. "It will be tough to bring all the promoters to a compromise." The SGM also endorsed the board's proposal to authorize the bank's board to amend the memorandum and articles of association in case authorized regulatory bodies ordered it to do so.

Source:
ekantipur