Habib Bank Sells Himalayan Bank Promoter Shares to National Life Insurance

Kathmandu — Nepal Rastra Bank (NRB) has approved Pakistan’s Habib Bank Limited (HBL) to sell its promoter shares in Himalayan Bank Limited to National Life Insurance Company Limited.

According to Himalayan Bank, the central bank approved the transaction following an agreement between HBL and National Life for the purchase and sale of 28,012,447 promoter shares at a rate of Rs. 118.88 per share. With NRB’s approval, preparations are now underway to transfer HBL’s shares to National Life.

The transaction complies with the Banks and Financial Institutions Act (BAFIA), which restricts the sale of promoter shares for the first five years of a bank’s operation and allows sales only within the promoter group thereafter. Additionally, any share transfer involving an ownership stake exceeding two percent requires prior approval from NRB.

Earlier, on Jestha 30, Himalayan Bank had issued a 35-day public notice inviting proposals from existing promoter shareholders to purchase HBL’s promoter shares. The notice had set a minimum price of Rs. 112.80 per share, while National Life proposed a higher offer of Rs. 118.88 per share.

Currently, National Life Insurance holds a 1.25 percent stake in Himalayan Bank. Upon completion of this transaction, its total ownership will increase to approximately 14 percent, significantly strengthening its position within the bank’s promoter group.