Muktinath Bikas Bank Concludes 19th Annual General Meeting, Approves Dividend Proposal
2nd November 2025, Kathmandu
Muktinath Bikas Bank Limited, one of Nepal’s leading national-level development banks, successfully concluded its 19th Annual General Meeting (AGM) in the scenic city of Pokhara on November 1, Saturday (15 Kartik 2082).
Muktinath Bikas Bank AGM
The meeting was a pivotal event, as shareholders provided their crucial endorsement for a substantial dividend payout and, more significantly, granted the Board of Directors the authority to initiate the process of upgrading the bank’s status to a commercial bank—a major strategic move aligned with the capital increment goals set by the Nepal Rastra Bank (NRB).
Key Decisions: Substantial Dividend and Capital Expansion
The AGM’s most significant outcome was the approval of the dividend proposal for the fiscal year 2080/81, rewarding shareholders with a total payout exceeding 18 percent. This decision reflects the bank’s robust financial performance and commitment to enhancing shareholder value amidst a challenging economic environment.
Total Dividend Approved: The assembly approved a substantial total dividend of 18.20% for its shareholders.
Dividend Breakdown: This payout is structured to provide both immediate returns and capital growth:
Bonus Shares: A significant portion, amounting to 13.53%, will be distributed as bonus shares. Bonus shares increase the number of shares held by the investor, enhancing the long-term capital base.
Cash Dividend: The remaining portion, 4.67%, will be distributed as a cash dividend. This component is critical as it covers the tax liability associated with the bonus share distribution, ensuring shareholders receive the bonus shares without incurring out-of-pocket tax expenses.
Capital Increment: Following the issuance of the approved bonus shares, Muktinath Bikas Bank’s paid-up capital is set to increase significantly, reaching an impressive total of NPR 9.03 billion (Rs. 9,03,88,767.11). This substantial capital increase provides the foundation for the bank’s strategic aspiration to climb to the next tier of the banking system.
The Mandate for Commercial Bank Status
The most forward-looking decision of the 19th AGM was the shareholders’ approval of key amendments to the bank’s Articles of Association. This procedural step was necessary to formally authorize the Board of Directors to initiate the process of upgrading the bank to a commercial bank, pending full compliance with guidelines issued by the Nepal Rastra Bank.
Strategic Significance: This move is highly significant, indicating that Muktinath Bikas Bank has achieved the necessary financial strength and operational maturity to compete with the top commercial banks in Nepal. Upgrading to commercial bank status offers numerous benefits, including the ability to operate nationwide without regional restrictions, the capacity to undertake larger-scale lending, and enhanced access to international financial markets.
NRB Guidelines: The decision is conditional upon the bank meeting all remaining stringent capital, operational, and regulatory requirements set forth by the NRB for commercial banks. The increased paid-up capital of over NPR 9 billion is a major step toward meeting these stringent financial criteria, positioning the bank favorably for its strategic application.
Leadership and Shareholder Engagement
The AGM provided a critical forum for corporate governance and transparent communication between the bank’s leadership and its investors.
Corporate Leadership: The meeting was expertly chaired by Khima Prakash Malla, Chairman of the Board of Directors. The proceedings commenced with a warm welcome address delivered by Bharat Prasad Lamsal, Board Member.
Performance Review: Pradyumna Pokharel, the Chief Executive Officer (CEO), took the floor to present a detailed review of the bank’s current performance, achievements in the previous fiscal year (FY 2081/82), and the bank’s future strategies. This engagement is vital for maintaining investor trust and alignment with long-term goals.
Q&A Session: Reflecting the bank’s commitment to transparency, a dedicated session allowed shareholders to raise various questions and suggestions concerning the annual report and the bank’s operations. These queries were directly and comprehensively addressed by the Chairman and the CEO, ensuring shareholders felt their voices were heard and their concerns were resolved.
Other Approvals: In addition to the major proposals, the AGM also successfully approved the appointment of auditors for the upcoming fiscal year (FY 2082/83), along with several other general but essential corporate proposals.
The 19th AGM represents a successful chapter for Muktinath Bikas Bank, consolidating its position as a high-performing development bank while securing the necessary mandate to pursue a strategic upgrade that promises significant long-term growth and enhanced value for its expanding base of shareholders.
For More: Muktinath Bikas Bank AGM
