KATHMANDU: As compared to last year, the dividend rate of Nepali banks have decreased this year. In average, the banks paid around 13 percent this year, however last year they distributed 19 percent in average.
Twenty-six commercial banks listed on the Nepal Stock Exchange have declared dividends to shareholders from last fiscal year’s earnings. Banks have emphasized bonus share rather than cash.
Due to the policy taken by the Nepal Rastra Bank and the contraction in the distributable profits of the banks, the banks have placed special emphasis on bonus shares rather than cash dividends.
Banks have distributed an average of 13.96 percent dividend in the current fiscal year, with an average bonus share of 11.22 percent. The cash dividend is only 2.75 percent. Even in this, many banks have given cash only to pay tax on bonus shares.
Nabil Bank has announced to distribute the highest 35.29 percent dividend from the last fiscal year’s earnings. It has 33.5 percent bonus and 1.76 percent cash dividend.
Of the 26 commercial banks, Century Commercial Bank will pay the lowest dividend of 7.5 percent. The bank will distribute 5.25 percent bonus and 2.25 percent cash dividend.
Bank’s performance
