State Bank of India (SBI), India's largest bank has purchased 5 percent shares of Nepal SBI which was previously owned by Agriculture Development Bank of Nepal. Nepal SBI Bank is the first Indo-Nepal joint venture in the financial sector sponsored by three institutional promoters — SBI, Employees Provident Fund and Agricultural Development Bank of Nepal. SBI now has 55% of shares in Nepal SBI, which was 50% before the purchase of 4,37,400 shares from ADB Nepal. Apart from it, Employees Provident Fund (EPF) has15 % and general public holds 35 % of shares in Nepal SBI.Nepal Rastra Bank had made a provision that one financial institution can't keep the cross hold share of other financial institution. Hence, ADB Nepal was liable to sell the promoter shares of Nepal SBI appointing ACE development bank as the issue manager.The sell of shares was on competitive bid process and SBI bank had agreed to pay maximum amount amongst eight competitive groups thus the shares of Nepal SBI was sold to SBI, said sources of ADB Nepal. SBI had compete with two different prices, RS.1502 for 3,49,290 shares and Rs. 1492 for 87,840 shares.Total of 87,34,791 shares of Nepal SBI is listed in Nepal Stock Exchange and had market price of Rs. 1751 Tuesday. In India, SBI had market price Rs. 1897.80 (INR) Tuesday at Bombay Stock Exchange. Nepal SBI had earned about 225.182 millions during nine months of the current fiscal year which was 144.45 million in the same period last year.
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