Pakistani Habib Bank formally exits from Nepal

KATHMANDU: Pakistan-based Habib Bank Limited has officially exited Himalayan Bank Limited after selling its entire promoter shareholding to National Life Insurance Company Limited. Following the transaction, National Life has now become the largest promoter shareholder in Himalayan Bank.

The bulk deal significantly influenced trading at the Nepal Stock Exchange (NEPSE) on Thursday. The NEPSE index increased by 34.22 points, closing at 2,038.38, with total daily turnover reaching Rs 7.51 billion. Among 319 listed companies traded during the session, Himalayan Bank’s promoter shares recorded the highest individual transaction volume.

According to NEPSE, a total of 1,40,06,230 units of Himalayan Bank promoter shares were bought and sold in today’s session. The sale was executed through broker number 48, Trishakti Securities, while the buying was carried out through broker number 34, Vision Securities.

Habib Bank, which previously held 12.93 percent (2,80,12,447 units) promoter stake in Himalayan Bank, had put the entire block of shares up for sale. National Life purchased the full stake at Rs 118.88 per share, amounting to a total transaction value of Rs 3.33 billion.

However, NEPSE’s homepage displayed the trading price at Rs 131 per share. NEPSE spokesperson Murahari Parajuli clarified that the displayed price represents the regular market rate, whereas this particular transaction was executed through the negotiated window, which allows large-scale block trading at pre-determined prices.

“The actual negotiated price for the transaction was Rs 118.88 per share. The Rs 131 figure seen on the homepage reflects regular float trading. Negotiated deals are recorded separately in the floor sheet,” Parajuli said.

Only 50 percent of the total shares listed for sale were cleared on Thursday. Due to system processing and trade settlement procedures, the remaining 50 percent (approximately 1,40,06,223 units) will be executed on Sunday, according to sources at National Life.

Habib Pays Rs 132.2 million CGT

Habib Bank will pay Rs 132.2 million in capital gains tax to the Government of Nepal for the transaction. The shares carry a face value of Rs 100 per unit, and the bank sold the shares with an added premium of Rs 18.88 per unit. Capital gains tax at the rate of 25 percent applies to the profit portion only.

Brokers explained that the NEPSE system automatically deducts 10 percent as TDS, while the remaining 15 percent is deposited to the tax authority on behalf of the seller by the brokerage firm handling the sale.

Market analysts say the exit of Habib Bank marks a major shift in Himalayan Bank’s promoter structure, giving Nepal-based institutional investor National Life Insurance more controlling influence in board decisions and strategic direction.

The deal is viewed as one of the largest block share transactions in Nepal’s banking sector in recent months, drawing strong attention from investors monitoring ownership realignment, capital market liquidity, and future institutional governance trends.

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