31st October 2025, Kathmandu
Miteri Development Bank Limited has announced its 20th Annual General Meeting (AGM), setting the stage for crucial decisions regarding shareholder returns, corporate governance, and strategic expansion in Nepal’s competitive financial sector.
Miteri Development Bank AGM
The AGM is scheduled to take place on Mangsir 6 at 11:00 AM at the Sunsari Industry and Commerce Association in Dharan, bringing together shareholders to approve key proposals that will directly influence the bank’s future trajectory. By simultaneously proposing a dividend and seeking authorization for mergers, the bank clearly signals its intent to maximize shareholder value through both immediate returns and long-term consolidation.
Key Financial and Strategic Proposals for Approval
The agenda for Miteri Development Bank’s 20th AGM is strategically focused on rewarding shareholders while providing the board with the necessary mandate to navigate the evolving regulatory landscape, particularly the emphasis by the Nepal Rastra Bank (NRB) on consolidation within the banking sector.
Proposed Dividend Distribution: The bank’s board of directors has put forward a proposal for the distribution of a 10 percent cash dividend. This dividend is calculated on the bank’s paid-up capital and is inclusive of all applicable taxes. The distribution of a cash dividend, as opposed to a stock (bonus) dividend, typically signals strong liquidity and a preference for direct returns to shareholders, providing them with immediate financial benefit. This proposal is a significant highlight for investors, confirming the bank’s commitment to consistently rewarding its owners.
Authorization for Merger and Acquisition (M&A): Perhaps the most significant strategic proposal is the motion to authorize the board of directors to pursue merger or acquisition discussions with other suitable banks and financial institutions (BFIs). This mandate is essential for the bank to explore avenues for expansion, increase its capital base, and achieve the economies of scale that have become crucial for survival and competitiveness in the face of the NRB’s drive for sectoral consolidation. The AGM will also approve necessary amendments to the bank’s Articles of Association and bylaws to facilitate the legal and structural corporate restructuring required for any potential M&A deal.
Corporate Governance and Financial Review: The meeting will also fulfill essential corporate governance requirements, including the review and approval of the financial statements for the previous fiscal year. Shareholders will also participate in the election of three directors representing the general shareholder category and the crucial appointment of auditors for the ongoing fiscal year. Additionally, the AGM will consider the approval of the bank’s expenditures related to Corporate Social Responsibility (CSR) initiatives from the previous year, ensuring accountability in its social spending.
Eligibility and Market Implications
To ensure transparency and proper participation in the AGM, Miteri Development Bank has clearly defined the eligibility criteria based on the Nepal Stock Exchange (NEPSE) regulations.
Book Closure Date: The bank has set the book closure period from Kartik 23 to Mangsir 8. This is the key window for determining eligibility.
Eligibility for Attendance and Dividend: Only those shareholders who are registered with NEPSE as of Kartik 20 (the day prior to the book closure) will be considered eligible to both attend the 20th AGM and receive the proposed 10 percent cash dividend. Investors intending to secure the dividend must ensure they have purchased the shares and completed the necessary transfer formalities before this date.
Market Context of Mergers: The pursuit of M&A is not unique to Miteri Development Bank. The entire development bank sector in Nepal has been experiencing consolidation, driven by central bank mandates to increase paid-up capital and strengthen the financial system. For Miteri Development Bank, which is currently a regional-level development bank operating in provinces like Koshi Pradesh (Jhapa, Morang, Sunsari, Dhankuta, Udaypur), a successful merger could allow it to potentially upgrade its status to a national-level development bank, significantly expanding its operational area, branch network, and overall business capacity.
This upcoming 20th AGM is a pivotal event, giving shareholders a direct voice in critical decisions that shape the company’s financial rewards and strategic direction, underscoring the bank’s commitment to corporate transparency and strategic growth in a dynamic economic environment.
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