Citizen Investment Trust Announces 13 Percent Dividend
22nd December 2025, Kathmandu
The Board of Directors of the Citizen Investment Trust has officially announced a total dividend of thirteen percent for its shareholders from the distributable income of the previous fiscal year. This decision was reached during a recent meeting held on Poush 6 2082. The announcement has sparked significant interest among investors in the Nepalese capital market as the Citizen Investment Trust or Nagarik Lagani Kosh is one of the most prominent state owned financial institutions in the country.
CIT Announces Dividend
This thirteen percent dividend package is composed of two parts which include five percent in the form of bonus shares and eight percent as a cash dividend. The cash portion also includes the amount required for dividend tax purposes ensuring a smoother distribution process for the individual investors.
BREAKDOWN OF THE CIT DIVIDEND PROPOSAL
The proposed dividend structure is designed to balance the immediate liquidity needs of the shareholders with the long term capital growth of the institution. By offering an eight percent cash dividend the trust provides direct financial returns to its investors which is especially appreciated in the current economic environment where cash flow is highly valued. On the other hand the five percent bonus share distribution helps in increasing the paid up capital of the trust without requiring additional external investment.
Currently the existing paid up capital of the Citizen Investment Trust stands at approximately six billion four hundred eighty one million seven hundred twelve thousand rupees. With the approval of the five percent bonus shares the total paid up capital will increase by over three hundred twenty four million rupees. This expansion of the capital base is essential for the trust as it continues to take on larger investment projects and expands its role as a key player in the development of the national economy.
APPROVAL PROCESS AND REGULATORY REQUIREMENTS
It is important for shareholders to understand that the announcement made by the Board of Directors is the first step in a multi stage approval process. Since the Citizen Investment Trust is a statutory body with significant government ownership the declared dividend must first receive the formal approval of the Government of Nepal through the Ministry of Finance. This regulatory oversight ensures that the distribution of profits is consistent with the financial health of the trust and the broader economic policies of the state.
Following the approval from the Ministry of Finance the dividend proposal will be presented at the upcoming Annual General Meeting of the trust. During the assembly the shareholders will have the opportunity to endorse the proposal through a formal vote. Only after this final endorsement will the bonus shares be credited to the demat accounts of the shareholders and the cash dividend be sent to their linked bank accounts. Investors are advised to keep an eye on the upcoming book closure date which will determine who is eligible to receive these returns.
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THE ROLE OF CIT IN THE NEPALESE CAPITAL MARKET
The Citizen Investment Trust plays a unique and multifaceted role in the financial landscape of Nepal. Established under the Citizen Investment Trust Act it functions as a savings collection body an investment manager and a market maker. The trust operates various voluntary and mandatory retirement schemes including the Employee Savings Growth Retirement Fund and the Citizen Pension Scheme. These programs provide social security and long term savings options for thousands of Nepalese citizens across various sectors.
As a market maker the trust has the responsibility of providing liquidity to the Nepal Stock Exchange particularly during periods of high volatility. This stabilization role is crucial for maintaining investor confidence in the secondary market. The decision to maintain a consistent dividend payout even during challenging fiscal years underscores the resilience and professional management of the trust. Its diverse investment portfolio which includes hydropower projects infrastructure development and government securities provides a steady stream of income that supports these annual payouts.
IMPACT ON SHAREHOLDERS AND MARKET SENTIMENT
For the retail investors the announcement of a thirteen percent dividend provides a sense of security. While the share price of CIT has seen some fluctuations recently on the Nepal Stock Exchange with the last traded price hovering around one thousand eight hundred thirty seven rupees the announcement of dividends often acts as a support level for the stock price. Long term investors who have held the stock for years benefit significantly from the compounding effect of bonus shares which increases their total unit count over time.
The five percent bonus shares also mean that the supply of CIT shares in the market will increase slightly after the listing process is complete. While an increase in supply can sometimes put downward pressure on the price the expanded capital base usually leads to better earnings capacity in the future which offsets this effect. The eight percent cash dividend provides a decent yield for those who entered the stock at lower price points in previous years.
CONCLUSION AND FUTURE OUTLOOK FOR NAGARIK LAGANI KOSH
In conclusion the proposal of a thirteen percent dividend by the Citizen Investment Trust is a positive indicator of the ongoing financial stability of the institution. As it moves toward its next Annual General Meeting the trust remains focused on diversifying its investment areas and enhancing its digital service delivery to its millions of beneficiaries. Whether you are a civil servant a private sector employee or a retail investor the growth of Nagarik Lagani Kosh remains central to the financial future of many in Nepal.
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