Jeevan Bikas Laghubitta AGM Approves Bonus, Cash Dividend
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4th February 2026, Kathmandu
The seventh annual general meeting of Jeevan Bikas Laghubitta Bittiya Sanstha Limited successfully concluded on January 13, 2026 (Poush 29, 2082), marking a significant step in the institutions journey toward capital consolidation and regional expansion. Held at the company’s central office in Katahari, Morang, the assembly brought together 96 shareholders representing over 61 percent of the total issued shares. The meeting, chaired by Bikram Raj Subedi, focused on rewarding shareholders through a double dividend structure while granting the board sweeping authority to pursue strategic mergers in the evolving microfinance landscape.
Jeevan Bikas Laghubitta AGM
Under the theme of sustainable growth, the AGM endorsed the transition of the organization from a localized entity into a more robust national level institution with a significantly higher capital base.
Approval of 14.7368 Percent Total Dividend
The highlight of the assembly was the formal approval of the dividend proposal for the fiscal year 2081 2082. Shareholders unanimously endorsed a total dividend of 14.7368 percent, continuing the institutions trend of providing double digit returns.
The dividend is divided into two primary components:
Bonus Shares: 14 percent bonus shares were approved, amounting to a capitalization of 215.064 million rupees. This issuance is designed to convert the institutions distributable profit into permanent equity.
Cash Dividend: A 0.7368 percent cash dividend, worth 11.319 million rupees, was approved. This cash portion is primarily intended to cover the tax obligations of shareholders arising from the bonus share distribution, a common practice to ensure “tax free” share additions for the investors.
Capital Restructuring and Paid Up Capital Growth
Following the endorsement of the 14 percent bonus shares, the AGM approved the necessary amendments to the Memorandum and Articles of Association to reflect the revised capital structure.
Previous Paid Up Capital: 1.536 billion rupees.
Bonus Capital Addition: 215.064 million rupees.
New Paid Up Capital: 1.751 billion rupees.
This capital hike positions Jeevan Bikas Laghubitta as one of the most well capitalized microfinance institutions in Nepal, meeting and exceeding the regulatory requirements for national level Class D financial institutions. The increase in capital is expected to enhance the banks borrowing capacity and allow for more aggressive lending in the agriculture and small business sectors across the Koshi Province and beyond.
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Strategic Authority for Mergers and Acquisitions
In a forward looking move, the Jeevan Bikas Laghubitta AGM granted the Board of Directors full authority to identify and execute merger or acquisition (M&A) opportunities. This mandate is crucial as the Nepal Rastra Bank (NRB) continues to encourage the consolidation of the microfinance sector to improve financial stability.
The board is now authorized to:
Conduct Due Diligence Audits (DDA) of potential target institutions.
Sign Memorandums of Understanding (MoU) for business combinations.
Appoint independent valuators to determine share swap ratios.
Complete all legal formalities required for integrated transactions.
This decision reflects the institutions strategy to “grow through consolidation,” potentially absorbing smaller regional microfinances to expand its branch network, which currently serves over 300,000 families.
Election of Directors and Corporate Governance
The AGM also saw the successful election of two directors from the general shareholder category. Gokarna Khatiwada and Ashok Sitaula were elected unopposed for a four year term. The uncontested nature of the election indicates strong shareholder alignment with the current management’s vision.
Furthermore, the assembly appointed Kinjil and Associates as the statutory auditor for the fiscal year 2082 2083, setting the remuneration at approximately 1.14 million rupees. This ensures that the institution remains compliant with the transparency and reporting standards mandated by the Company Act and NRB directives.
Conclusion
The conclusion of the seventh Jeevan Bikas Laghubitta AGM sends a strong signal of stability and growth to the market. By successfully raising its paid up capital to 1.751 billion rupees and securing a mandate for future mergers, JBLB is positioning itself as a leader in the microfinance industry. For shareholders, the 14 percent bonus shares represent a tangible increase in their investment value, while the institutions commitment to a “Poverty Free Nepal” remains the core of its operational strategy.
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