Promoter Shareholders Exiting Kumari Bank

Promoter shareholders of Kumari Bank are increasingly selling their shares. Over the last 15 days, the bank has initiated 8 auction processes, putting 8,549,686 shares up for sale.

When the promoter shareholders did not purchase the shares during the initial sale, the bank opened two sets of shares for the general public. The remaining six sets are still open for purchase by the promoter shareholders.

On Jestha 28, after the promoter shareholders did not buy the shares, the bank opened 6 million shares to the general public. According to an official from Kumari Capital, the amendment to the Bank and Financial Institution Act 2073 is causing promoter shareholders to exit.

The amendment prohibits banks from providing loans or facilities to related individuals or significant shareholders, leading to the exit of promoter shareholders. Additionally, the inability of banks to distribute dividends has prompted shareholders to sell their shares.

Currently, the bank is intensifying its efforts to sell shares to the general public. Other banks like NIC Asia, Citizens Bank, and Prime Bank are also opening shares for the general public after promoter shareholders did not purchase them.