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NIDC, RBB fail to offload cross-holding shares

The state owned banks and financial institutions have been finding it difficult to sell cross holding stakes.

The central bank has extended the deadline to offload the cross holding stakes by the end of the current fiscal year – July 15 – but the both the Rastriya Banijya Bank and NIDC Development Bank are struggling to find buyers.

The state-owned NIDC Development Bank has called for a closed bid auction today to sell 1.8 million units of promoter shares of Nabil Bank that it holds.

It has asked interested individuals or firms to bid for the stakes within 21 days from today. The minimum bid amount stands at Rs 1,254 per share or Rs 4 higher than the last traded price, it said. Nabil Bank’s promoters share gained Rs 45 per unit stake today to close at Rs 1,295.

Earlier, NIDC had 6.15 per cent stake or 1,498,914 units of promoter shares, in Nabil Bank. But it has already sold 422,633 units of shares through closed bidding auction last April. Then, it had set the minimum bidding price at Rs 1,022 per share.

The NIDC has asked interested investors to bid for a minimum of 100 units of shares.
RBB

Likewise, Rastriya Banijya Bank (RBB) – the wholly state-owned bank – has also not been able to divest its 6.2 million units of shares of Nepal Investment Bank and some 196,000 units of Nepal Aawas Finance, though it has been planning to off load since long.