Agricultural Development Bank’s Subsidiary Proposes 10.5263% Dividend

3rd November 2025, Kathmandu

Fund Management Company Limited (FMCL), a wholly-owned or major subsidiary of Agricultural Development Bank (ADBL), has announced its plan to distribute a 10.5263% cash dividend to its shareholders from the profits generated in the Fiscal Year (FY) 2024/25.

ADBL’s Subsidiary Proposes Dividend

This proposal, which includes the applicable tax amount, translates to a total cash payout of NPR 3,268,205.62. The approval for this significant dividend and other critical institutional matters will be sought at the company’s Annual General Meeting (AGM), scheduled for 6 December 2025.

Fund Management Company Limited: Mandate and Operations

Established in the mid-nineties, the Fund Management Company Limited plays a specialized and critical role within the broader structure of the Agricultural Development Bank, focusing on asset management and investment.

Company History and Core Objectives

FMCL was officially registered with the Office of the Company Registrar on 23 Chaitra 2050 and commenced its operations shortly thereafter on 30 Chaitra 2050. The company’s core mandate is the management of various funds, including the employee provident funds of the bank itself and public contributions. This makes the company a major institutional investor in the Nepali market.

Its primary objectives are centered on maximizing returns through a diversified investment strategy, including:

• Real Estate and other viable investment avenues.
• Securities of organized institutions and bonds.
• Government-issued bonds, providing a secure investment channel.
• Shares of banks and financial institutions (BFIs).
• Mutual funds or units issued by financial entities.

This strategic diversification across fixed income, equity, and alternative assets is designed to ensure the growth and security of the funds it manages, directly benefiting the employees and public contributors whose money is entrusted to the firm.

Key Proposals for the Annual General Meeting (AGM)

The AGM on 6 December 2025 will be a crucial institutional gathering, with the management set to seek shareholder approval for the financial results of the last fiscal year and to lay the groundwork for future operations.

Dividend Approval and Financial Review

The most anticipated item on the agenda is the proposal for the 10.5263% cash dividend. The total cash amount proposed for distribution is precisely NPR 3,268,205.62, which includes the dividend tax. The approval of this proposal is contingent upon the shareholders’ acceptance of the company’s financial performance.

Key financial proposals for review and approval include:

• The Annual Report of the Board of Directors for FY 2081/82.
• The comprehensive auditor’s report.
• The final balance sheet as of Ashadh 2082 (mid-July).
• The profit/loss account for the full FY 2081/82.
• Cash flow statements and the full annual financial statements.

Governance and Future Direction

The AGM will also address critical governance and compliance matters, ensuring the necessary leadership and oversight are in place for the new fiscal year:

Appointment of Auditors: The company will determine the appointment of auditors for FY 2082/83 based on recommendations from the Auditor General’s Office. This includes finalizing their remuneration and service terms.

Formation of the Board of Directors: The meeting will also see the formation and election of the new Board of Directors, providing the strategic guidance and oversight for the company’s investment operations.

A significant Special Proposal is also on the agenda: the proposed amendments to the company’s memorandum and articles of association. This signifies potential changes in the company’s core objectives, operational scope, or internal governance rules, which are essential for adapting to a changing regulatory or market environment. Such amendments can impact the company’s future investment strategy and its ability to operate efficiently as an asset manager.

The declaration of a solid cash dividend reflects the company’s financial health and its effective management of the investment portfolio over the fiscal year, ensuring a direct return on investment for its shareholders, primarily Agricultural Development Bank.

For More: ADBL’s Subsidiary Proposes Dividend