Dividend of 39 billion from 25 commercial banks, 10 bank in the favorites of investors!


Kathmandu, Dec 23. 25 commercial banks have declared their dividend out of existing 27.  All the other banks except Rastrya Banijya Bank and Civil Bank decided to distribute dividend out of the profit earned during the previous year to their shareholders. Some of the banks have even approved the the dividend through AGM after the permission of NRB. However, majority of the bankers are still going to through the procedure. The amount equivalent toRs.39.04 billion have been declared as dividend from the bankers till the date. The declared dividend consists of an average of 14.55 percent of the paid up capital. 11.81 percent for the purpose of bonus share and 2.74 percent for the cash dividend has been purposed from the amount. Rs.31.6871 billion for bonus share and Rs.7.3609 billion for cash dividend has been separated from the aggregate dividend of Rs 39.04 billion.

Amount of dividend of the commercial bank?

Nabil Bank topped the list of paying highest dividend for the year. It has purposed 35.26 percent of dividend. Out of this, 33.5 percent would be bonus share and 1.76 percent the cash dividend. Compare to the previous year, it is the 1.26 percent point rise. The bank had paid 34 percent dividend in the previous year.

Though Nabil bank paid more than 35 percent dividend and second runner up remained far away in the payment of divided. NIC Asia and Himilayan Bank decided to pay 20 percent dividend from each for the year. Former declared 19 percent bonus share and 1 percent cash dividend while later one decided 14 percent bonus share and 6 percent cash dividend. Among these NIC Asia has already approved it through AGM.

Nepal Investment Bank managed to spot itself in 4th rank in paying dividend. It has paid 18.5 percent dividend which consists of 13 percent bonus share and 5.5 percent cash dividend.

Similarly, NMB Bank reported that it has decided 16.2 percent of dividend and 13 percent of bonus share with 3.2 percent of cash dividend.

Nepal Bank, Bank of Kathmandu and Global IME Bank declared 16 percent dividend from each. Among them, 14 percent bonus and 2 percent cash from Global IME, 13 percent bonus and 3 percent cash from Bank of Kathmandu, and 12 percent bonus and 4 percent cash dividend has been expected to be declared. Bank of Kathmandu has distributed the dividend.

Similarly, Agricultural Development Bank stand at 9th position declaring 15.78 percent dividend. It has proposed to pay 15 percent bonus share and dividend to cover the cost of tax on it. Prime Commercial Bank and Siddartha Bank has decided to distribute dividend of 15 percent each in which former is going to pay 15 percent bonus share and later would be paying 12 percent bonus share and 3 percent cash dividend.

Kumar Bank uplifted itself higher than the last year. It has decided to pay 10.85 percent bonus and 3.15 percent cash dividend out of the proposed 14 percent dividend. The dividend would be more than that of the previous year.

Sanima Bank has ranked 13th position in paying dividend. The bank has proposed 10 percent bonus share and rest 3.6 percent cash dividend for the year.

Similarly, 10 percent cash dividend and 3.05 percent cash of the 13.05 percent dividend from Mega Bank, 7 percent cash divident and 4.84 percent of cash included in 11.84 percent dividend of Standard Charter Bank, 9.5 percent cash dividend and 2 percent cash included in 11.5 percent of Laxmi Bank and 8 percent cash dividend and 3 percent cash included in 11 percent dividend of Citizen Bank out of the proposed dividend declared by these banks. Among these banks dividend of Mega Bank has increased while other fell down.

Further, dividend of NCC Bank, Everest Bank, Prabhu Bank, and Machhapuchchhre Bank remained in double digits. NCC Bank proposed 10.81 percent dividend including 10.26 percent bonus share and 0.54 percent cash, Everest Bank 10.5 percent dividend including 5 percent bonus share and 5.5 percent cash, Prabhu Bank 10.52 percent dividend including 10 percent bonus share and 0.52 percent cash, Machhapuchchhre Bank 10.4 percent dividend including 7.03 percent bonus share and 3.37 percent cash. Advance payment of dividend has reduced the divident payment of the Machhapuchchhre Bank of this year.

In the meantime, dividend of Nepal SBI Bank, Nepal Bangladesh Bank, Sunrise Bank, Century Bank stuck in the single digit only. In the proposal, SBI Bank declared 9.47 percent dividend that includes 6 percent bonus share and 3.47 percent cash, Nepal Bangladesh 8.42 percent dividend that includes 6 percent bonus share and 2.42 percent cash, Sunrise Bank 8.28 percent dividend including 5.8 percent bonus share and 2.48 percent cash and Century Bank 7.5 percent dividend with 5 percent bonus share and 2.5 percent cash.

Bank that encouraged the shareholders?

Analysis ofsecondary market showed that shareholders of Himilayan Bank, NIC Asia Bank, Nepal Investment Bank, Bank of Kathmandu, Global IME Bank, Agricultural Development Bank, Prime Commercial Bank, Kumari Bank and Mega Bank are buoyed after declaration of dividend. The graph of the demand has seen great than the sales in the share market that has opened right after the decision taken by the bankers. Investors are excited with the amount of dividend declared even though reaction of share market on Nabil Bank has been keenly awaited.

In the contrasts, banks like Standard Charted, Everest has shown impassive figure to its shareholder.  Similarly, Prabhu Bank, Nepal SBI Bank, Nepal Bangladesh Bank, Sunrise Bank also fall in the just a fair category. Due to the lower bonus share, there is not so good reaction for Nepal Bank Limited as well.