28th September 2025, Kathmandu
MBL Holds 27th AGM
Machhapuchhre Bank’s 27th AGM, held on Ashoj 10, 2082 (September 26, 2025) at Hotel Pokhara Grand, Pokhara, was a critical event that formalized the distribution of dividends and approved the financial results for the preceding fiscal year. The high level of participation from both founder and ordinary shareholders reflected robust investor confidence.
Dividend Approval and Distribution Strategy
The central resolution passed at the AGM was the approval of an 8 percent dividend on the bank’s paid-up capital, inclusive of taxes, sourced from the net profit of the fiscal year 2081/82. This dividend is structured to serve both the immediate financial interests of shareholders and the bank’s long-term capital requirements.
- 4 Percent Cash Dividend: This portion provides direct, immediate financial returns to eligible shareholders, which the bank aims to credit before the Dashain festival, demonstrating a commitment to timely investor returns.
- 4 Percent Bonus Shares: This component increases the shareholders’ equity stake in the bank. By issuing bonus shares, Machhapuchhre Bank effectively retains capital within the institution, directly bolstering its financial foundation for future growth while simultaneously rewarding shareholders with increased ownership.
The bank’s promptness in conducting its AGM and approving the dividend early in the fiscal year establishes it as a benchmark for operational efficiency within the Nepalese banking sector.
Impact on Capital and Financial Strength
The distribution of bonus shares will have a direct, positive impact on the bank’s capital structure:
- Increased Paid-Up Capital: Following the 4 percent bonus share issuance, Machhapuchhre Bank’s total paid-up capital will increase to NPR 12.08 billion. This is a strategic move that enhances the bank’s core capital base, supporting greater lending capacity and adherence to regulatory capital adequacy norms set by Nepal Rastra Bank (NRB).
- Strong Financial Performance (FY 2081/82): The dividend decision is underpinned by robust financial results. The bank reported a net profit of NPR 1.88 billion for the fiscal year 2081/82. This strong performance translates to an Earnings Per Share (EPS) of NPR 16.21, reflecting the bank’s effective management of deposits and credit, and its overall financial health. The consistent growth in profits ensures the bank can maintain its policy of rewarding investors while strategically reinvesting for future expansion.
Corporate Governance and Investor Confidence
The AGM also served to reinforce the bank’s commitment to strong corporate governance:
- Financial Transparency: Shareholders’ review and approval of the annual financial report for FY 2081/82 underscores the bank’s dedication to full transparency and compliance with financial reporting standards.
- Active Shareholder Engagement: The reported “significant participation” from both founder and ordinary shareholders demonstrates a healthy level of trust and active engagement in the bank’s strategic decision-making processes, which is a hallmark of good governance.
Strategic Significance for Future Growth
The bank’s combined dividend and capital management strategy holds significant strategic benefits:
- Balanced Reward Mechanism: The combination of cash and bonus dividends appeals to both income-focused and growth-oriented investors, signaling a balanced financial policy.
- Funding Growth Initiatives: The augmented paid-up capital provides the necessary financial cushion to expand operations, innovate with new financial products, and pursue market opportunities in Nepal’s competitive financial landscape.
- Market Leadership: Being the first bank to complete its AGM and announce dividends so early in the fiscal year boosts the bank’s market reputation for financial health and superior operational speed, potentially attracting new investors.
In conclusion, Machhapuchhre Bank Limited’s 27th AGM was a resounding success, translating strong fiscal-year performance into immediate shareholder value and positioning the institution for sustained, stable growth through strategic capital augmentation and transparent corporate governance. This timely and comprehensive action plan reinforces the bank’s commitment to its stakeholders and its long-term stability in the Nepali financial market.
For More: MBL Holds 27th AGM