10th October 2025, Kathmandu
The 19th Annual General Meeting (AGM) of Kamana Sewa Bikas Bank Limited (KSBBL) is officially scheduled to take place today, Friday, October 10, 2025, which corresponds to 24 Ashwin, 2082 B.S.
KSBBL Holds AGM Today
The meeting is being held at the pre-announced location: Lisara Reception, Bhagawati Bahal, Naxal, Kathmandu, with proceedings commencing at 11:00 AM.
This is a critical annual event for KSBBL, serving as the main forum for the bank’s management to communicate its performance and future strategy to its shareholders, while seeking their formal approval for significant financial and governance decisions.
Analysis of the Proposed Dividend Structure
The core item on the agenda is the proposal for distributing dividends from the accumulated profits of the last fiscal year (FY 2081/82). The total proposed dividend package is significant, combining both stock and cash components, demonstrating a commitment to rewarding shareholders while simultaneously increasing the bank’s capital base.
The total dividend proposed for endorsement at the 19th AGM is 15.7895% of the bank’s current paid-up capital. This total percentage is strategically divided into two parts:
I. Bonus Shares (Stock Dividend)
Proposed Bonus Share Percentage: 10%
Purpose: This portion is distributed in the form of new shares, which serves the crucial function of directly increasing the bank’s paid-up capital. By retaining cash within the business and issuing shares, the bank strengthens its equity base, which is often a regulatory requirement and a measure of financial stability and capacity for future growth.
II. Cash Dividend
Proposed Cash Dividend Percentage: 5.7895%
Purpose: This component, which is inclusive of the tax liability on the bonus shares, offers immediate liquidity to the shareholders. The distribution of cash dividend, in this specific context, ensures that shareholders do not have to bear the tax burden associated with receiving the bonus shares, a common practice in the Nepali capital market.
Calculation and Financial Impact
Based on the publicly reported paid-up capital of Kamana Sewa Bikas Bank, which stands at approximately NPR 3.51 billion, the proposed dividend amounts can be calculated to illustrate the monetary value being distributed, pending AGM approval and subsequent endorsement by the Nepal Rastra Bank (NRB).
Value of 10% Bonus Shares:
3,510,000,000×10%=NPR 351,000,000
This equates to over NPR 351 million worth of new shares that will be issued, increasing the paid-up capital and consequently the bank’s total equity.
Value of 5.7895% Cash Dividend (Including Tax):
3,510,000,000×5.7895%≈NPR 203,260,440
This is the total cash outflow, providing immediate returns to eligible shareholders and covering the necessary tax component.
The total value of the proposed dividend—stock and cash combined—highlights the bank’s financial health and its distributable profit from the fiscal year 2081/82.
Governance and Operational Resolutions
In addition to the financial matters, the 19th AGM has several important corporate governance and operational resolutions to address, which are critical for the bank’s ongoing management and regulatory compliance.
A. Election of Directors
A crucial part of the meeting involves the election of six directors to the bank’s Board of Directors. The election is structured to maintain a balance of representation, ensuring the interests of both the primary stakeholders are represented in the bank’s highest governing body:
- Three Directors representing the Founding Shareholders (Promoter Group).
- Three Directors representing the General Shareholders (Ordinary Group).
- The outcome of this election will shape the bank’s strategic leadership and direction for the coming term.
B. Amendment Authority
The shareholders will vote on a proposal to grant the Board of Directors the authority to make any necessary amendments to the bank’s Memorandum of Association (MoA) and Articles of Association (AoA). This is a standard measure that allows the board to efficiently comply with directives or instructions issued by regulatory bodies, such as the Nepal Rastra Bank (NRB) or the Securities Board of Nepal (SEBON), without requiring a separate General Meeting for every minor statutory change. This flexibility is vital for maintaining compliance in a dynamic regulatory environment.
C. Financial and Audit Approvals
Other key items essential for corporate accountability include:
- Approval of Financial Statements: The meeting will review and formally approve the financial statements, including the balance sheet, profit and loss account, and cash flow statements for the immediate past fiscal year (FY 2081/82).
- Appointment of Auditors: Shareholders will also approve the appointment of the statutory auditor for the current fiscal year (FY 2082/83) and determine their professional remuneration, ensuring independent financial oversight for the new fiscal period.
Book Closure and Shareholder Eligibility
The final procedural item confirms the eligibility of shareholders to participate in the meeting and receive the dividend.
- Book Closure Date: 8 Ashwin, 2082 B.S. (September 24, 2025 AD)
- Eligibility Date: 7 Ashwin, 2082 B.S. (September 23, 2025 AD)
This means that only individuals whose names were registered in the bank’s shareholder book maintained by NEPSE up until the day before the book closure date, which was September 23, 2025, are eligible to attend today’s 19th AGM and are entitled to receive the proposed 15.7895% dividend (10% Bonus Share and 5.7895% Cash Dividend), once the proposal is approved.
The convening of the 19th AGM today marks the culmination of the bank’s performance for the past fiscal year and sets the stage for its strategic moves in the current period, particularly with the proposed capital increment via the significant bonus share distribution.
For More: KSBBL Holds AGM Today