Kathmandu, Dec 3: NEPSE listed commercial banks have begun announcing dividends from the profits of the last fiscal year 2081/82 BS. According to reports, 11 out of 19 listed commercial banks have so far declared dividends.
One commercial bank (Kumari Bank) has already announced that it will not distribute dividends, while among the remaining seven banks, only two appear capable of issuing dividends based on their financial standing.
The banks that have announced dividends include Everest Bank, Machhapuchchhre Bank, Citizens Bank, Siddhartha Bank, Global IME Bank, Standard Chartered Bank Nepal, Agricultural Development Bank, Laxmi Sunrise Bank, NMB Bank, and Nepal SBI Bank.
Everest Bank has declared the highest dividend (20 percent) comprising 6 percent bonus shares and 14 percent cash. Citizens Bank has announced the lowest, with 5 percent bonus shares and 0.26 percent cash, totaling 5.26 percent.
Standard Chartered Bank Nepal declared 19 percent cash dividend; Agricultural Development Bank declared 3.25 percent bonus shares and 9.75 percent cash, totaling 13 percent; Laxmi Sunrise Bank declared 10 percent bonus shares and 0.53 percent cash (10.53 percent); Siddhartha Bank announced 5 percent bonus shares and 5.53 percent cash (10.53 percent); NMB Bank declared 5 percent bonus and 5 percent cash (10 percent); Global IME Bank declared 8 percent cash; and Machhapuchchhre Bank announced 4 percent bonus and 4 percent cash (8 percent).
Nepal SBI Bank has declared 4 percent bonus shares and 5 percent cash, totaling 9 percent dividend.
Kumari Bank has already announced that it will not distribute dividends this year.
Among the remaining seven banks, only Nabil Bank and Prabhu Bank are in a position to distribute dividends. Based on last fiscal year’s financial reports, Nabil Bank can distribute bonus up to 17.64 percent, while Prabhu Bank can distribute up to 4.44 percent.
The banks unable to distribute dividends include Himalayan Bank, Nepal Bank, NIC Asia Bank, Nepal Investment Mega Bank, and Prime Bank.
Due to the lack of improvement in the country’s investment environment, excess liquidity has piled up in banks, putting them in a state of uncertainty. Although the interest rates on all types of bank loans have fallen to single digits, or below 10 percent, investors are not approaching banks to seek further loans.
Even though Nepal Rastra Bank, and government have introduced flexible policies to create an investment-friendly environment, the economy has remained in contraction for the past two to three years.
Moreover, business owners themselves say that the investment environment has been severely affected after the vandalism and arson targeting industries and businesses during the Gen Z protests on September 8 and 9. They are now hesitant and are in a dilemma over whether to make further investments or not. #nepal #banks #divident
