The institutions that merged at a swap ratio of 1:1 obtained NRB approval on September 13, 2017. The merged entity started joint transaction on October 15 although the regulatory body could not commence the stock trading.
As per the set SEBON mechanism, any institutions should start stock trading within 15 days of commencement of joint transaction. However, Western Development Bank has ignored the mechanism has commenced the trading after 9 months since the start of joint transaction.
The paid-up capital of Western Development Bank has totaled Rs 429.3 million after the merger. The bank must distribute bonus share worth Rs 70 million to meet the minimum paid-up capital of Rs 8 billion as per NRB directive.