Banking News/ Half a dozen banks are set to announce dividends before Dashain. Everest Bank has already declared dividends on Thursday. The bank’s Board of Directors meeting held on Bhadra 19 proposed a 20% dividend.
From the profit of the fiscal year 2081/82, the bank has proposed a total of 20% dividend from its current paid-up capital of NPR 12.94 billion comprising a 6% bonus share and 14% cash dividend (including tax).
The proposed dividend will be distributed to shareholders after approval from Nepal Rastra Bank (NRB) and endorsement by the bank’s Annual General Meeting (AGM).
The bank had posted a net profit of NPR 4.91 billion last year, with distributable profit standing at NPR 4.95 billion. Based on this, the bank had the capacity to distribute up to 38.27% dividend. However, it decided to retain some amount in reserve and distribute only 20%.
Meanwhile, Machhapuchchhre Bank has called its 27th AGM on Ashoj 10 in Pokhara. The AGM will endorse the proposed dividend from last fiscal year’s profit.
The AGM will pass a special proposal to distribute 4% bonus shares and 4% cash dividends from the current paid-up capital. Similarly, the bank will issue NPR 3 billion worth of 8.25% preference shares at a face value of NPR 100 per share, authorize the Board of Directors to amend the bank’s Memorandum and Articles of Association, approve the appointment of a director from the public shareholder group, and appoint auditors, among other agendas. The bank has set Bhadra 27 as the book closure date for AGM and dividend purposes.
Likewise, Nepal Infrastructure Bank (NIFRA) has also declared dividends. The bank’s Board of Directors meeting held on Bhadra 19 proposed a dividend from the profit of fiscal year 2081/82.
According to the bank, it has proposed distributing 6.3158% cash dividend (including tax) from the current paid-up capital of NPR 21.60 billion. After approval from NRB and endorsement by the company’s upcoming AGM, the dividend will be distributed to investors.
Alongside Everest, Sanima, Citizens, NIFRA, and Kamana Sewa Development Bank, Manjushree Finance has also initiated necessary processes to declare dividends from last fiscal year’s profit before Dashain.
To announce dividends ahead of Dashain, banks must complete the final audit of last fiscal year’s financial statements and obtain preliminary approval from NRB. At present, the banks are in the process of obtaining NRB’s final approval for the declared dividends.
After receiving approval, the banks will finalize their AGM dates. Among them, NIFRA, Kamana Sewa Development Bank, and Manjushree Finance have already submitted their audited financials to the concerned supervision departments for preliminary approval. Sanima and Citizens Bank have also completed their audits and are undergoing further review.
