16th December 2024, Kathmandu
Mahalaxmi Bikash Bank has proposed a 7% dividend distribution to its shareholders. This decision was made during the 610th meeting of the bank’s Board of Directors held on 16 December.
Mahalaxmi Bikas Bank’s 7% Dividend Proposal
The dividend proposal includes a combination of 3% bonus shares and 4% cash dividends, based on the bank’s profit for the fiscal year 2023/24.
Details of the Dividend Proposal
The board has recommended issuing a 7% dividend from the bank’s profits for the fiscal year 2023/24. This dividend proposal will be finalized after approval from Nepal Rastra Bank and the upcoming Annual General Meeting (AGM). Once approved, shareholders will receive the proposed dividend.
According to the bank, the total dividend amount, based on the current paid-up capital, will be NPR 291,992,302. This total consists of two components: 3% bonus shares and 4% cash dividends.
Breakdown of the Proposed Dividend
The bank’s paid-up capital, as of the end of the fiscal year 2023/24, stands at NPR 4.1713 billion (NPR 417,131,818.60). From this amount, the proposed 3% bonus shares will total NPR 125,139,358, and 4% cash dividends will amount to NPR 166,852,744.
Bonus Shares
The board has decided that 3% of the paid-up capital will be distributed as bonus shares. This comes to NPR 125.1 million, which will be issued as shares to the bank’s existing shareholders. It is important to note that the bonus shares will be provided after including the applicable tax.
Cash Dividend
Along with the bonus shares, the board has proposed a 4% cash dividend, which amounts to NPR 166.85 million. This cash dividend will be distributed directly to the shareholders.
Approval Process
The proposed dividend will only be distributed once it is approved by Nepal Rastra Bank and ratified during the upcoming AGM. Once the approval is granted, shareholders will be eligible to receive the dividends as per the proposed terms.
Strategic Financial Position
This dividend proposal highlights the bank’s solid financial performance in the fiscal year 2023/24. By offering a combination of bonus shares and cash dividends, Mahalaxmi Bikash Bank aims to reward its shareholders while maintaining its capital structure for future growth and development.
Implications for Shareholders
Once approved, the 7% dividend payout will offer a valuable return to shareholders, strengthening their confidence in the bank’s consistent profitability and long-term prospects.
Shareholders should look forward to receiving their share of the dividend after the AGM approval and regulatory approval from Nepal Rastra Bank.
Mahalaxmi Bikash Bank’s decision to offer both cash and bonus dividends demonstrates a balanced approach to rewarding shareholders and maintaining financial health.
For more: Mahalaxmi Bikas Bank’s 7% Dividend Proposal
