Machhapuchhre Bank Distributes Cash Dividend to Shareholders
29th October 2025, Kathmandu
Machhapuchhre Bank Limited (MBL) has successfully initiated the distribution of its 4 percent cash dividend, an action ratified at its 27th Annual General Meeting (AGM) held on 26th September 2025.
MBL Distributes Cash Dividend
This move, coupled with the approved 4 percent bonus share issuance, highlights the commercial bank’s stable financial performance and its dedication to consistently rewarding its shareholders while simultaneously bolstering its capital base for strategic growth.
Eligibility and Book-Closure Details
The distribution process is strictly based on the records maintained by the Nepal Stock Exchange (NEPSE) as of the predetermined cutoff date.
The Cutoff: The determining date for dividend eligibility was the book-closure date of 26th Bhadra 2082.
The Requirement: Only shareholders who were officially registered in NEPSE’s system and holding the bank’s shares by the end of 25th Bhadra 2082 are deemed eligible for both the 4 percent cash dividend and the upcoming 4 percent bonus shares.
Shareholders who have adhered to the electronic holding system, known as dematerialization, have already received the cash dividend seamlessly credited to their respective bank accounts linked to their Demat accounts. This efficient process minimizes delays and administrative overhead for fully compliant investors, reinforcing the advantages of modern security market practices in Nepal.
Crucial Compliance Advisory for Shareholders
The bank has issued a critical advisory emphasizing the need for shareholders to ensure their records are fully compliant to avoid future complications in receiving corporate benefits, a matter of paramount importance in the Nepalese stock market.
Dematerialization and Account Update
Shareholders who still hold physical share certificates or whose Demat accounts have not been properly updated are strongly urged to complete the necessary formalities immediately.
Action Required: Investors must dematerialize their physical shares by converting them into electronic form and ensure their Demat accounts are accurately linked to a valid bank account for direct cash transfers.
Future Benefit: Compliance is not only for the current cash dividend but is a mandatory step for receiving the forthcoming 4 percent bonus shares and all future dividends and corporate action benefits without interruption.
Dividend Disbursement for Pledged Shares
A specific provision addresses shares used as collateral for loans, a common practice known as margin lending in the market.
The Process: For shareholders who have pledged their Machhapuchhre Bank shares to a bank or financial institution (BFI) for a loan, the cash dividend will only be released into the shareholder’s bank account after the concerned BFI provides a No Objection Certificate (NOC).
Purpose: This requirement is a standard regulatory step to safeguard the interests of the lending BFI, ensuring that any encumbrances or claims on the pledged assets are duly acknowledged before the distribution of any associated profits.
Impact of the Dual Dividend Policy
The decision by Machhapuchhre Bank to distribute both a cash dividend and bonus shares reflects a balanced capital distribution strategy that appeals to different investor preferences.
Cash Dividend: Provides investors with immediate liquidity and represents a tangible return on their investment, which is particularly valued by income-focused investors.
Bonus Shares: These shares increase the bank’s paid-up capital by capitalizing retained earnings, which supports the bank’s future stability, regulatory compliance (like meeting capital adequacy norms), and potential for future expansion. For the shareholder, it increases the number of shares held without any extra cost, thereby enhancing their overall equity stake in the bank.
This dual approach is a powerful signal to the investing public, reinforcing confidence in the bank’s financial stability and management efficiency, and further positioning Machhapuchhre Bank as an investor-friendly institution in Nepal’s competitive commercial banking landscape.
For More: MBL Distributes Cash Dividend
