Shangri-la Development Bank Proposes Dividend for FY 2024/25
17th November 2025, Kathmandu
Shangri-la Development Bank Limited (SADBL) has officially put forward a proposal for the distribution of a significant 10.3583 percent dividend to its shareholders for the fiscal year 2024/25.
Shangri-la Bank Proposes Dividend
This decision, which signals strong financial performance, was formalized during the bank’s 374th Board of Directors meeting, which was convened on Friday, November 14, 2025, between 1 PM and 2 PM.
The dividend proposal is based on the bank’s current capital standing, calculated on a paid-up capital of Rs. 3,55,62,55,719.55. The proposed payout structure is carefully designed to offer shareholders both capital appreciation and immediate liquidity, aligning with the bank’s strategy to reward its investors effectively while strengthening its equity base.
Detailed Breakdown of the Dividend Proposal
The total proposed distribution of 10.3583 percent is divided into two distinct components, ensuring benefits are realized in both cash and non-cash forms:
1. Bonus Shares for Capital Growth
The bank has proposed the issuance of 5 percent bonus shares. This portion amounts to Rs. 17,78,12,785.98 and will be distributed as new shares to existing shareholders. The distribution of bonus shares is a common mechanism used by banks to retain capital for operational expansion while simultaneously increasing the equity holding of its shareholders. It serves to strengthen the bank’s capital adequacy position as required by the regulatory standards set by Nepal Rastra Bank (NRB).
2. Cash Dividend for Immediate Liquidity
A cash dividend of 5.3583 percent has been proposed. This cash payment totals Rs. 19,05,53,626.30. This amount includes the necessary funds allocated to cover the tax liability on both the bonus shares and the cash dividend itself. The provision of cash for tax purposes is a key benefit for shareholders, making the bonus share component essentially tax-free in their hands. The cash dividend provides investors with immediate, usable returns on their investment.
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Total Dividend Payout
The combined distribution—the 5 percent bonus share and the 5.3583 percent cash dividend—results in a total dividend of 10.3583 percent. The aggregate monetary value of this total proposed payout stands at Rs. 36,83,66,412.28.
Regulatory and Shareholder Approvals Required
It is important for shareholders to note that the dividend proposal, despite being approved by the Board of Directors, is still subject to a two-stage approval process before implementation.
Nepal Rastra Bank (NRB) Approval: As the central bank and primary regulator for development banks in Nepal, NRB must review and officially approve the proposed dividend percentage. NRB rigorously analyzes the development bank’s capital adequacy, non-performing loans (NPLs), and overall financial health to ensure the proposed distribution does not compromise the bank’s stability or the interests of its depositors.
Annual General Meeting (AGM) Endorsement: The proposal must then be endorsed by the bank’s upcoming 21st Annual General Meeting (AGM), where shareholders vote to approve the financial statements and the proposed dividend.
Only upon securing both of these approvals will the dividend be officially distributed to eligible shareholders.
Comparison and Market Standing
The proposed dividend of 10.3583 percent for the fiscal year 2081/82 represents a significant step up in shareholder returns compared to the previous fiscal year, 2080/81, when Shangri-la Development Bank had distributed a lower total dividend, which included a smaller bonus share component. This enhanced payout signals the management’s confidence in the bank’s profitability and its ability to sustain growth in the coming years.
Copies of the official notice detailing the dividend proposal and the board decision have been formally forwarded to all relevant regulatory bodies and stakeholders, including the Nepal Rastra Bank, Nepal Securities Board (SEBON), CDS and Clearing Limited, Office of Company Registrar, and NIMB Capital Limited. This necessary regulatory filing ensures transparency and compliance with capital market procedures.
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