Nepal SBI Bank Announces Dividend for FY 2024/25
25th November 2025, Kathmandu
Nepal SBI Bank has announced a significant dividend proposal for its shareholders, drawn from the profits generated during the last fiscal year, 2024/25.
Nepal SBI Bank Dividend
This decision, made by the bank’s Board of Directors in a meeting held on November 24, 2025, reflects the institution’s stable financial health and commitment to providing returns to its investors.
Details of the Proposed Dividend
The total proposed dividend package combines both bonus shares (stock dividend) and cash payment, designed to serve the dual purpose of rewarding shareholders and strengthening the bank’s capital base.
Total Proposed Dividend: The bank has proposed a total dividend of 9 percent of its existing paid-up capital.
Paid-up Capital Basis: This dividend percentage is calculated against the bank’s current paid-up capital, which stands at NPR 10,89,91,58,068 (approximately NPR 10.9 billion).
Breakdown of the Dividend
Bonus Shares: The bank has proposed a 4 percent bonus share (stock dividend). This means that for every 100 shares an investor holds, they will receive 4 new shares from the bank’s reserves. This will effectively increase the bank’s paid-up capital and its capacity for future lending operations.
Cash Dividend: The remaining portion is a 5 percent cash dividend. This cash amount is inclusive of the tax liability applicable to the dividend distribution. For every share held, the shareholder will receive a direct cash payment equivalent to 5 percent of the face value (NPR 100).
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Regulatory and Shareholder Approval Process
The announced dividend is currently a proposal and is subject to a multi-stage approval process before the funds are ultimately distributed to the eligible shareholders.
Nepal Rastra Bank (NRB) Approval: As a Class ‘A’ commercial bank, Nepal SBI Bank must first receive formal approval from the central bank, Nepal Rastra Bank (NRB). NRB reviews the bank’s proposal to ensure that the dividend declaration complies with existing prudential norms, including capital adequacy requirements (CAR) and regulatory reserve levels.
Annual General Meeting (AGM) Ratification: Once approved by the NRB, the dividend proposal must then be ratified by the shareholders at the bank’s upcoming 32nd Annual General Meeting. This step fulfills the legal requirement for shareholder endorsement of key corporate decisions.
Distribution: Only after ratification at the AGM will the bank proceed with the actual distribution of the cash dividend and the listing of the bonus shares in the shareholders’ Demat accounts.
Impact on the Bank and Shareholders
The dividend decision reflects the bank’s financial strategy and market standing.
Reward and Commitment: The announcement reflects the bank’s continued commitment to rewarding its shareholders while maintaining the highest standards of regulatory compliance and financial transparency. The simultaneous distribution of cash and bonus shares is a balanced approach, satisfying investors seeking immediate returns (cash) and those seeking long-term capital appreciation (bonus shares).
Capital Strength: The 4 percent bonus share issuance will lead to an increase in Nepal SBI Bank’s paid-up capital by approximately NPR 43.6 crore (NPR 436 million). This strengthens the bank’s capital base, which is crucial for managing credit risk and meeting the NRB’s minimum capital requirements, thereby enhancing its capacity for future growth and lending.
Nepal SBI Bank, a joint venture between the State Bank of India and local investors, is known for its stable performance. The 9 percent total dividend is viewed positively by the market, confirming the bank’s sound profitability for the fiscal year 2024/25.
For More: Nepal SBI Bank Dividend
