National Microfinance Announces Dividend: Bonus and Cash Details
17th December 2025, Kathmandu
National Microfinance Financial Institution Limited, a prominent national level microfinance provider in Nepal, has officially announced a dividend distribution for its shareholders. The decision was made during a meeting of the company Board of Directors. This announcement pertains to the profits earned during the previous fiscal year, reflecting the commitment of the institution to share its financial gains with its investors.
National Microfinance Announces Dividend
According to the official board decision, the company will distribute a total dividend of 15 percent based on its current paid up capital. This dividend is structured in two parts: a 14.25 percent bonus share and a 0.75 percent cash dividend. The cash portion is primarily intended to cover the tax obligations that shareholders will incur upon the issuance of the bonus shares. This strategic move helps the institution to capitalize its reserves while ensuring that shareholders are not burdened by immediate tax liabilities.
Financial Performance and Capital Growth of National Microfinance
National Microfinance Financial Institution Limited currently operates with a paid up capital of approximately 1.33 billion rupees. The decision to issue 14.25 percent bonus shares will significantly increase this capital base, enabling the institution to expand its lending capacity and reach more rural communities across Nepal. In the previous fiscal year, the company demonstrated a strong financial performance, which provided the necessary distributable profit for this double digit dividend.
The growth of the microfinance sector in Nepal has been essential for financial inclusion. National Microfinance, headquartered in Nilkantha, Dhading, has been a key player in this movement since its operation began in 2014. By providing credit and savings facilities to low income individuals, the institution supports small scale entrepreneurship and agricultural productivity. The consistent ability of the company to provide dividends, ranging from 15 percent in the current year to even higher percentages in previous years, highlights its robust business model and operational efficiency.
Regulatory Approval and the Path to Distribution
It is important for investors to understand that the declared dividend is currently a proposal. In accordance with the banking and financial regulations of Nepal, the dividend must first receive formal approval from the Nepal Rastra Bank. The central bank will review the audited financial statements of the microfinance institution to ensure that it meets all regulatory requirements, including capital adequacy and provision for bad loans.
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Following the approval from the central bank, the dividend proposal will be presented for endorsement by the shareholders at the upcoming Annual General Meeting of the company. Once endorsed at the meeting, the bonus shares will be credited to the demat accounts of eligible shareholders, and the cash dividend will be deposited into their bank accounts. The specific book closure date, which determines who is eligible for the dividend, will be announced by the company following the regulatory approvals.
Market Position and Investor Confidence
National Microfinance remains a highly watched stock on the Nepal Stock Exchange. The institution is known for its strong reserves and a high return on equity, which has historically attracted both individual and institutional investors. Major commercial banks, including Nepal Investment Mega Bank and Kumari Bank, hold significant promoter stakes in the company, which adds to its credibility and financial stability.
As the microfinance sector continues to evolve under new central bank directives, National Microfinance has focused on maintaining a healthy non performing loan ratio while increasing its core revenue. The recent turnaround in the profits of many microfinance institutions, including National Microfinance, indicates a recovering economic environment for small scale borrowers. This dividend announcement serves as a signal of confidence to the market that the institution is well positioned for future growth.
Conclusion and Next Steps for Shareholders
The announcement of a 15 percent total dividend by National Microfinance Financial Institution Limited is a welcome development for its shareholders. By offering a substantial bonus share portion, the company is allowing its investors to benefit from long term compounding and an increased share count. This move also strengthens the financial foundation of the company, allowing it to serve more clients and contribute to the economic development of the country.
Shareholders are advised to keep their demat accounts active and ensure that their bank account details are correctly updated with their respective Depository Participants. Staying informed about the book closure date and the date of the Annual General Meeting will ensure that all eligible investors receive their rightful dividends without any delays.
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