Shine Resunga Development Bank Announces 13 Percent Dividend

9th November 2025, Kathmandu

Shine Resunga Development Bank Limited (SRDBL) has delivered welcome news to its shareholders, announcing a significant 13 percent dividend based on the profits generated during the last fiscal year, 2024/25.

Shine Resunga Dividend Announcement

This generous payout, a testament to the bank’s robust financial health and sustained performance in a competitive market, was formally approved during a pivotal Board of Directors’ meeting held on Kartik 21. The proposal outlines a strategic mix of returns designed to reward shareholders immediately while simultaneously bolstering the bank’s capital base for future expansion.

Breaking Down the 13% Dividend Proposal

The total 13 percent dividend is not purely a cash distribution but is structured to provide both immediate returns and long-term capital appreciation. The board has proposed a combination of cash and bonus shares, utilizing the bank’s retained earnings efficiently.

The distribution is segmented as follows:

Bonus Shares: A 3 percent bonus share is proposed on the bank’s current paid-up capital. This portion of the dividend does not involve a direct cash outflow from the bank but rather capitalizes retained earnings by issuing new shares to existing shareholders. Bonus shares are particularly valued by investors as they increase the number of shares held, potentially leading to greater future returns and enhancing the bank’s core capital for business expansion in line with regulatory requirements.

Cash Dividend: A 10 percent cash dividend (including tax) is proposed. The cash component provides a direct, tangible return to shareholders, offering liquidity. The fact that the dividend includes the tax component simplifies the payout process for investors, as the bank manages the tax deduction before distribution.

This strategic mix underscores a balanced approach by the management, aiming to satisfy immediate shareholder appetite for cash while adhering to the central bank’s preference for capital augmentation through bonus shares, particularly for development banks looking to sustain growth.

The Formal Pathway to Payout

It is crucial for shareholders to understand that this 13 percent dividend is, at present, a proposal. The distribution is not final and is subject to a strict two-step regulatory and statutory approval process before the shares can be issued or the cash is credited to accounts.

Nepal Rastra Bank (NRB) Approval: As the primary regulator of financial institutions in Nepal, the NRB must first review and approve the proposed dividend. This scrutiny ensures that the bank has met all capital adequacy requirements, provisioning norms, and distributable profit criteria as per the central bank’s directives. The NRB’s approval is the first and most critical regulatory hurdle.

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Annual General Meeting (AGM) Endorsement: Following the NRB’s go-ahead, the proposed dividend must then be formally endorsed by the shareholders at the bank’s upcoming Annual General Meeting (AGM). The AGM serves as the ultimate corporate approval body, where shareholders exercise their right to vote on key proposals, including dividend distribution and the adoption of the bank’s financial statements.

Only after both the NRB approval and the AGM endorsement are secured will the bank set a book closure date, after which eligible shareholders will receive their respective bonus shares and cash payments.

Financial Context: A Look at the Profit Base

The dividend proposal is a direct reflection of Shine Resunga Development Bank’s positive financial performance in the recently concluded fiscal year 2081/82. Data from the bank’s fourth-quarter report for FY 2081/82 indicates a robust profit base, necessary to support such a significant dividend payout. The bank reported a Net Profit of NPR 688.62 million for the fiscal year 2081/82. This substantial net profit, coupled with a healthy level of retained earnings and reserves, provides the necessary cushion to distribute the 13% reward while maintaining a strong capital adequacy ratio.

Furthermore, strong financial fundamentals are evident in the bank’s continued operations in the new fiscal year. The bank has already reported a net profit of NPR 203.04 million for the first quarter of FY 2082/83, indicating that the bank is carrying positive momentum forward. The ability to consistently generate strong profits is the ultimate guarantee of sustained dividend payments and long-term shareholder value.

Implications for Shareholders and the Market

The 13 percent dividend, particularly the 3 percent bonus share component, carries several positive implications:

Market Confidence: The announcement signals the board’s confidence in the bank’s operational performance and its ability to generate profits even amid a tight liquidity environment.

Capital Base Growth: The issuance of bonus shares will automatically increase the bank’s paid-up capital, aligning it with the regulatory mandates and positioning it for further expansion in its loan portfolio and branch network.

Liquidity in the Secondary Market: Once the bonus shares are listed on the Nepal Stock Exchange (NEPSE) following the distribution, they will add to the number of publicly traded shares, potentially increasing market liquidity for the stock.

Shine Resunga Development Bank’s consistent commitment to rewarding its shareholders reinforces its position as a reliable investment option among Nepal’s national-level development banks. The market now awaits the necessary seals of approval from the central bank and the shareholders themselves to finalize this significant dividend distribution.

For More: Shine Resunga Dividend Announcement