Century Commercial Bank is all set for initial public offering (IPO) by Poush (January 2014). Securities Board of Nepal (SEBON), on 26th December, Thursday, granted permission to the bank for IPO. The bank will issue highest number of shares to the general public among private banks. Until now,  Agriculture Development Bank has issued highest number of shares in the country's stock market. Century Commercial Bank plans to float primary shares worth Rs 920 million to the public. After the IPO, the paid up capital of the bank will rise to Rs 2 billion.  The bank currently has Rs 1.08 billion paid up capital. The bank's CEO, Ganesh Kumar Shrestha informed that a meeting of directors will decide the share issuance date as the bank received permission only on Thursday mid-day. 

 

According to official data, cash deposit at Century Commercial Bank totaled Rs 14.24 billion by last Wednesday. Similarly, loans and investments reached Rs 11.50 billion and the bank reserves accumulated to Rs 140 million. Likewise, Non Performing Loan (NPL) was recorded at 0.63 per cent. By the end of October, operating profit of the bank was Rs 37.60 million and net profit was Rs 23.90 million. After the IPO, the capital structure of the bank will be 54 per cent from promoter shares and remaining 46 per cent from public shares. Currently, Century Commercial Bank is providing financial services to its customers from 31 branches across the country. 

 

6% Interest in IPO Saving Deposit Account 

Immediately after receiving share issuance confirmation from SEBON, Century Commercial bank has launched 'IPO Saving Deposit Account.' The bank in a press statement said that it will provide interest at the rate of 6.25 per cent per annum to the depositors. "The account can be opened with a minimum deposit of Rs 1,000," reads the statement. The statement informed that the depositors will be able to invest in the bank's IPO through the account. Similarly, the bank will deposit dividend amounts directly into the accounts of shareholders.