Six Commercial Banks Skip Dividends, NIC Asia Yet to Decide

Of Nepal’s 20 commercial banks, 19 have decided on dividends for the last fiscal year, 2024/25. While NIC Asia Bank has yet to make a decision, six banks have decided not to distribute dividends. These include Rastriya Banijya Bank, which is not listed on the Nepal Stock Exchange (NEPSE), and Kumari Bank, Nepal Bank, Prabhu Bank, Nepal Investment Mega Bank, and Himalayan Bank, all of which are listed on NEPSE. These banks have scheduled their annual general meetings (AGMs) for January 13 and 14.

Notably, the five listed banks that skipped dividends have left investors without returns for three consecutive fiscal years.

Among the 13 banks that declared dividends, 10 have already held their AGMs. Machhapuchchhre Bank was the first to do so, on September 26. The bank distributed a total dividend of 8 percent, split equally between 4 percent bonus shares and 4 percent cash after tax.

The NMB Bank is holding its AGM on January 8, Nabil Bank on January 12, and Prime Commercial Bank on January 14. NMB plans to propose a 10 percent dividend, while Nabil has announced 12.5 percent. Prime Commercial has proposed an 8.42 percent dividend. The bank will close its books on January 5, making those holding shares until January 4 eligible for the dividend.

Everest Bank has announced the highest dividend this year – 20 percent, including 6 percent bonus shares and 14 percent cash after tax. The bank’s bonus shares were listed on the secondary market on December 21. With a paid-up capital of Rs 13.72 billion, Everest Bank has maintained a consistent dividend policy. Last year, it distributed a 15.53 percent dividend.