24th October 2025, Kathmandu
Garima Bikas Bank Limited, a key player among Nepal’s “B” class financial institutions, has announced its 29th Annual General Meeting (AGM), scheduled for Kartik 27, 2082 (November 13, 2025), in Pokhara.
Garima Bikas Bank Announces AGM
The meeting brings forth a robust agenda encompassing financial approvals, shareholder returns, and critical long-term strategic changes. The proposals signal the bank’s proactive stance on enhancing its financial stability, operational efficiency, and market presence in a rapidly evolving financial landscape. This article delves into the implications of these key decisions for the bank’s future trajectory and its esteemed shareholders.
Rewarding Shareholders: The 10.53% Combined Dividend
A cornerstone of the 29th AGM agenda is the proposal for a substantial dividend distribution for the fiscal year 2081/82 (2024/25), demonstrating the bank’s commitment to delivering value to its investors.
The bank’s Board of Directors has proposed a total dividend of 10.53% on the current paid-up capital of NPR 5,68,05,17,327.57. This is split into two components: a 6% bonus share (worth NPR 34,08,31,039.65) and a 4.53% cash dividend (worth NPR 25,73,27,434.94, which typically includes the tax component on the bonus shares).
For shareholders, the approval of this dividend package offers a dual benefit. The cash dividend provides immediate liquidity and income, while the bonus shares increase the number of shares held, enhancing the shareholder’s stake in the company and providing a foundation for future capital gains and dividends. The distribution of bonus shares, pending Nepal Rastra Bank (NRB) approval, will also serve to immediately boost the bank’s paid-up capital, a crucial step often mandated or encouraged by the central bank for financial stability and growth capacity.
The book closure date, Kartik 18, 2082 (November 4, 2025), is a critical deadline, as only shareholders recorded on this date will be eligible to receive the proposed dividend and attend the AGM.
Paving the Way for Expansion: Capital Increase and Strategic Shifts
The special proposals slated for the 29th AGM highlight a clear strategic vision aimed at fortifying the bank’s operational foundation and preparing for future growth opportunities.
Authorized Capital Increment and Head Office Relocation
The proposal to increase the bank’s authorized capital to NPR 6,10,00,00,000 is a forward-looking move. Authorized capital represents the maximum amount of share capital a company is permitted to issue to shareholders. Increasing this limit signals management’s intent to raise additional capital in the future, likely through rights issues, further bonus shares, or a merger/acquisition process. This enhanced capital ceiling will provide the necessary legal headroom for future expansion initiatives.
Simultaneously, the decision to relocate the registered head office from Lazimpat to Baluwatar, Kathmandu, is a significant operational change. Baluwatar is a prominent financial hub in Kathmandu, housing key government and financial institutions. Such a strategic move is often intended to enhance the bank’s corporate image, facilitate better access to central regulatory bodies (like NRB), and potentially improve operational synergy by situating the head office in a more central and high-profile commercial location.
Mandate for Merger and Acquisition (M&A) Activities
Perhaps the most impactful strategic proposal is granting the Board of Directors the authority to pursue mergers or acquisitions with other licensed banks or financial institutions. In Nepal’s banking sector, consolidation has been a major trend, often driven by NRB’s policies to create a more resilient and stronger financial system.
For Garima Bikas Bank, securing this M&A authority is a critical enabler. It positions the bank to:
Achieve Economies of Scale: A larger entity can often reduce per-unit costs.
Expand Market Reach: Merging with an institution in a different geographical area or with a complementary customer base instantly broadens the bank’s footprint.
Strengthen Capital Base: M&A is a common route to rapidly meet regulatory capital requirements or to simply create a more substantial balance sheet, enhancing public confidence and lending capacity.
This authority is essential for conducting due diligence, executing Memoranda of Understanding (MoU), and navigating the complex regulatory approval process, indicating that Garima Bikas Bank is actively preparing for potential consolidation in the near term.
Strengthening Governance and Brand Identity
The AGM will also cover essential corporate governance and branding matters. The routine appointment of auditors for the fiscal year 2082/83 (2025/26) and the approval of the prior fiscal year’s (2081/82) financial statements ensure regulatory compliance and transparency.
A proposal to increase allowances for board members is aimed at ensuring competitive compensation to attract and retain high-calibre professionals, reflecting modern corporate governance practices. Furthermore, proposals to change the bank’s logo and stamp, along with authorizing the Board to make necessary amendments to the Articles of Association and regulations, indicate a complete brand refresh and regulatory alignment in preparation for the bank’s next phase of growth following the strategic shifts.
These combined ordinary and special proposals paint a clear picture of a financial institution focused not just on immediate profitability through dividends, but also on long-term structural enhancement, aggressive market positioning, and a commitment to strategic consolidation. Shareholders’ participation and approval of these proposals are vital steps in solidifying Garima Bikas Bank’s path toward becoming a more dominant and structurally sound National Level Development Bank.
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