Eight Development Banks to Distribute Dividends

Eight out of the 15 listed development banks have announced plans to distribute dividends for the last fiscal year, while one bank has decided not to offer any payout.

So far, nine development banks have fixed the dates for their annual general meetings (AGMs). Among them, Lumbini Development Bank has decided not to distribute dividends this year. The bank, which had distributed a 7 percent dividend in the previous year, has called its AGM for January 14 without proposing any dividend.

Six development banks have yet to announce their AGM dates. Saptakoshi Development Bank, Sindhu Development Bank, Corporate Development Bank, Jyoti Development Bank, Narayani Development Bank, and Excel Development Bank have not convened their AGMs so far.

As the deadline for holding AGMs approaches, several banks have already completed their meetings. Kamana Sewa Development Bank held its AGM on October 10, Muktinath Development Bank on November 1, Garima Development Bank on November 13, Miteri Development Bank on November 22, Shine Resunga Development Bank on December 12, and Shangrila Development Bank on December 22. The dividends proposed by these banks have already been approved by their respective AGMs.

Among the banks, Muktinath Development Bank announced the highest dividend payout at 18.2 percent. Kamana Sewa Development Bank followed with 15.79 percent, while Shine Resunga Development Bank announced a 13 percent dividend. Garima Development Bank declared a 10.53 percent dividend, Shangrila Development Bank 10.36 percent, and Miteri Development Bank 10 percent.

Meanwhile, Mahalaxmi Development Bank is set to approve a 10.37 percent dividend through its AGM scheduled for January 5. Green Development Bank has also included a proposal to approve an 8.46 percent dividend at its AGM scheduled for January 14.

Data show that development banks yet to schedule their AGMs have not distributed dividends for several years. Saptakoshi Development Bank has not paid dividends since fiscal year 2017/18, Sindhu Development Bank since 2018/19, Excel Development Bank since 2020/21, and Corporate Development Bank and Jyoti Development Bank since 2021/22. Narayani Development Bank has yet to distribute dividends since its establishment.