Banking Khabar / Investors in banks and financial institutions that posted profits in the last fiscal year 2025/26 (FY 2082/83) are increasingly likely to receive dividends before Dashain this year.
Commercial banks have begun advancing the dividend distribution process after completing the external audit of their financial statements for FY 2082/83. Nabil Bank, Everest Bank, Sanima Bank, Machhapuchchhre Bank, Kumari Bank and Nepal Infrastructure Bank (NIFRA) have sought prior approval from Nepal Rastra Bank (NRB) to declare dividends.
With more banks moving ahead with the process, expectations are growing that some investors could receive dividends before Dashain. After obtaining prior approval from NRB, the banks’ boards will propose dividend rates. They must then obtain final approval from the central bank before convening their annual general meetings (AGMs). The AGM can be called only after giving at least 21 days’ notice.
Based on the unaudited financial statements published by the banks, Everest Bank currently has the highest dividend-paying capacity at 38.32%. Sanima Bank has a dividend capacity of 20.85%, followed by Nabil Bank at 19.10%. Machhapuchchhre Bank and Kumari Bank have dividend capacities of 7.51% and 3.02%, respectively.
However, the dividend-paying capacity reflected in financial statements does not necessarily translate into the actual dividend rate. The respective boards will decide the proportion of bonus shares and cash dividends, subject to approval from NRB. Therefore, banks with higher dividend capacity are not necessarily expected to distribute dividends at the same rate.
This year, banks are also expected to give greater preference to cash dividends over bonus shares. With banks’ paid-up capital already at relatively high levels and less pressure to raise capital through bonus shares, they may focus more on distributing available profits as cash dividends. The final decision, however, will rest with the respective boards.
If NRB completes the approval process on time, some banks could complete their AGMs and distribute dividends before Dashain. In the development banking sector, Shangrila Development Bank and Kamana Sewa Bikas Bank have already received prior approval, further raising expectations among commercial bank investors that dividends could be distributed before the festival.
As Dashain is one of Nepal’s major festivals, receiving dividends before the festival would provide additional relief to investors. Investor interest is particularly high in banks with strong dividend-paying capacity. The timing of NRB approvals, board decisions and AGMs will ultimately determine which banks’ investors receive dividends before Dashain.
