Kamana Sewa Bikas Bank Calls Annual General Meeting with Dividend Proposal

17th September 2025, Kathmandu

Kamana Sewa Bikas Bank Limited has announced its 19th Annual General Meeting (AGM) for Friday, October 10, 2025 (24th Ashwin 2082), at Lisara Reception in Kathmandu.

KSBBL Calls AGM

The meeting is scheduled to begin at 11:00 AM. A key proposal on the agenda is the approval of a 15.7895% dividend from the previous fiscal year’s profits. This dividend is comprised of a 10% bonus share and a 5.7895% cash dividend (including tax). The bank has declared a book closure date of 8th Ashwin 2082 to determine which shareholders are eligible to receive the dividend and participate in the AGM. This means that only shareholders who hold shares purchased up to September 23, 2025 (7th Ashwin 2082) on the Nepal Stock Exchange (NEPSE) will be eligible. The dividend proposals, once approved by the AGM and endorsed by the Nepal Rastra Bank, will be distributed to shareholders. This move positions Kamana Sewa as the first national-level development bank to announce a dividend for the fiscal year 2024/25.

Key Proposals and Corporate Governance

In addition to the dividend proposal, the AGM will address several other significant items. These proposals are aimed at strengthening the bank’s corporate governance, enhancing transparency, and ensuring that its operations remain aligned with the interests of its shareholders. One of the primary proposals is to grant authority to the Board of Directors to amend the bank’s memorandum of association and bylaws as required by regulatory bodies or for operational efficiency. This flexibility is crucial for adapting to the dynamic financial and regulatory landscape in Nepal.

Furthermore, the AGM will include the election of six directors. Three of these directors will be representatives from the founder shareholders, while the other three will be elected from the general public. This dual representation on the board is a common practice in Nepal’s corporate governance framework, designed to balance the interests of both major investors and public shareholders. The meeting will also include the appointment of a new auditor for the upcoming fiscal year. This is a critical step in ensuring the bank’s financial statements are independently verified and that its financial health remains transparent to both shareholders and regulators. These measures collectively highlight the bank’s commitment to maintaining a robust framework of accountability and transparency.

The Role of Book Closure in Dividend Distribution

The concept of book closure is a standard procedure in the securities market and is of critical importance to investors. When a company announces a book closure, it temporarily stops registering share transfers. In the case of Kamana Sewa Bikas Bank, the book closure on September 24, 2025 (8th Ashwin 2082) means that any shares bought or sold on that specific date will not affect the eligibility of the shareholders for the announced dividend. The shareholders who are registered as of the end of the trading day on September 23 ( 7th Ashwin 2082) will be considered the official shareholders for the purposes of the AGM and dividend distribution. This measure ensures a fair and transparent process for determining who is entitled to receive the benefits of the dividend. For investors, it is a crucial date to be aware of, as it directly impacts their eligibility to receive the declared profits. The proposed bonus shares, which increase the number of shares a shareholder owns, and the cash dividend, which provides an immediate financial return, are a testament to the bank’s healthy financial performance and its commitment to rewarding shareholder loyalty and investment.

The bank’s decision to distribute a total dividend of 15.7895% is a notable increase from the 12% dividend it distributed in the previous fiscal year. This increase reflects the bank’s strong performance and profitability. As a national-level development bank, Kamana Sewa is one of the leading financial institutions in Nepal, and its ability to consistently provide dividends to its shareholders reinforces investor confidence. The AGM provides a platform for shareholders to not only approve these financial benefits but also to stay informed about the bank’s strategic direction, financial performance, and future plans. The upcoming meeting is a pivotal event that will shape the bank’s governance and reward its investors, setting a positive tone for its long-term growth and stability.

For More: KSBBL Calls AGM