Nepal Rastra Bank has granted permission to some banks and financial institutions, which are under pressure in their core capital, to issue perpetual non-cumulative preference shares.

Banks Issuing Preference Shares:

Nabil Bank:
- Share Name: Nabil 8% Perpetual Non-Cumulative Preference Shares.
- Units Issued: 50 million units (at NPR 100 per share).
- Issue Value: NPR 5 billion.
- Dividend Rate: 8% (distributed only in profitable years).
- Special General Meeting: Completed on Bhadra 17.
- Status: To apply to Nepal Rastra Bank after approval from the general meeting.
NMB Bank:
- Units Issued: 30 million units (at NPR 100 per share).
- Issue Value: NPR 3 billion.
- Dividend Rate: 8.25%.
- Board Meeting: Completed on Bhadra 14.
- Status: Preparing to issue shares after obtaining approval from Nepal Rastra Bank.
NIC Asia Bank:
- Units Issued: 50 million units (at NPR 100 per share).
- Issue Value: NPR 5 billion.
- Dividend Rate: 8.5%.
- Status: Proposal was returned after submission to Nepal Rastra Bank; now preparing to re-approve the proposal through a special general meeting and resubmit it.
Kamana Sewa Bikas Bank:
- Units Issued: 3.5 million units (at NPR 100 per share).
- Issue Value: NPR 350 million.
- Dividend Rate: 9%.
- Status: Preparing to apply to Nepal Rastra Bank after approval from the general meeting.

Banks That Have Previously Issued Preference Shares:

Everest Bank: 7% Convertible Shares (already converted to general shares).
Agricultural Development Bank: Preference shares worth NPR 5.43 billion.

Conclusion:

This decision is expected to help meet the core capital requirements, ensure the financial stability of banks, and pave the way for further credit flow. Issuing preference shares will play a crucial role in improving the capital structure of the banks.