Habib Bank to Sell Founder Shares in Himalayan Bank to National Life Insurance

Kathmandu — Pakistan-based Habib Bank Limited has agreed to sell its entire stake of founder shares in Himalayan Bank Limited to National Life Insurance Company Limited. The transaction, involving 28,012,447 units of founder shares, has been proposed at a rate of Rs. 118.88 per share — significantly higher than the minimum asking price of Rs. 112.80 announced in an earlier public notice.

This strategic share acquisition, however, is subject to the approval of Nepal Rastra Bank (NRB). As per regulatory provisions, the sale of founder shares to an entity with more than 2% ownership in a bank requires prior consent from the central bank. The process for obtaining this approval will now formally commence following a mutual agreement between Habib Bank and National Life Insurance.

National Life, already a former founder shareholder in Himalayan Bank, currently holds a 1.25% stake. The company will not need to seek additional clearance from the Nepal Insurance Authority, as recent amendments to investment guidelines allow insurance companies to invest up to 15% in public companies. Since both parties fall under the founder category and the proposal meets all conditions under the Banking and Financial Institutions Act, 2073, and NRB’s Unified Directive, 2081, the regulatory path is streamlined for this transaction.

The share sale follows a public notice issued by Himalayan Bank on Jestha 30 (June 13), inviting proposals from interested founder shareholders. Despite the minimum price set at Rs. 112.80 per share, National Life submitted a more competitive offer of Rs. 118.88 per share, which was accepted by Habib Bank.

Once NRB approval is granted, the entire founder shareholding of Habib Bank in Himalayan Bank will be officially transferred to National Life Insurance Company, marking a significant development in the bank’s shareholder structure.