Muktinath Bikas Bank Deposits Cash Dividend into Shareholders’ Accounts

17th November 2025, Kathmandu

Muktinath Bikas Bank Limited has successfully initiated the direct deposit of the cash dividend approved during its nineteenth Annual General Meeting (AGM) into the bank accounts of its eligible shareholders.

Muktinath Bank Dividend Deposit

This distribution began promptly on Kartik 15, the very day the dividend proposal received endorsement from the shareholders.

The distribution of the dividend, announced on 1 Mangsir 2082 (Monday), reflects the bank’s commitment to efficient post-AGM processing and timely payment of returns to its investors. This action is a crucial part of maintaining strong shareholder relations and corporate trust within the Nepalese capital market.

Details of the Dividend Endorsed

The dividend was approved during the bank’s nineteenth AGM, which was held on Kartik 15. The total payout approved consisted of a blended package of cash and bonus shares.

Cash Dividend: The AGM had endorsed a 4.67 percent cash dividend, which was calculated based on the bank’s current paid-up capital. Significantly, this 4.67 percent cash component includes the amount required to cover the tax liability applicable to the concurrent distribution of bonus shares. By covering the tax burden, the bank ensures that the bonus shares received by the shareholders are effectively tax-free, maximizing the benefit to the investors.

Bonus Shares: In addition to the cash dividend, the AGM also approved a substantial proposal to distribute 13.53 percent bonus shares. This bonus share issuance will significantly increase the bank’s paid-up capital, simultaneously boosting the equity holding of its shareholders, and signaling management’s confidence in future retained earnings.

The process of depositing the 4.67 percent cash dividend commenced immediately following the AGM approval, ensuring minimal delay in rewarding shareholders.

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Important Mandates for Seamless Dividend Receipt

While the bank is efficiently depositing the cash dividend, two important requirements have been stipulated that shareholders must fulfill to ensure the smooth and uninterrupted receipt of their funds. These requirements address regulatory compliance and data accuracy.

1. Requirements for Pledged Shares

Shareholders who have utilized their shares as collateral for loans with any lending bank or financial institution must adhere to a specific procedure before they can receive their cash dividend. They are required to submit a No Objection Certificate (NOC) or a release letter from the concerned lending institution. This is a standard practice to prevent the dividend from being illegally withdrawn while the shares remain encumbered by a lien. The lending institution must formally release the dividend entitlement to the shareholder.

2. Mandate for Demat Account Update

The bank has issued an urgent request urging shareholders whose bank details are not updated in their demat (beneficiary) accounts to rectify this situation as soon as possible. The National Securities Depository, CDS and Clearing Limited (CDSC), now mandates that all dividend payments be routed directly to the shareholder’s bank account linked to the demat account. Without accurate and updated bank details, the cash dividend payment cannot be processed, leading to delays and complications. Shareholders must contact their respective depository participant (DP) to ensure their account information is current.

The efficient distribution of the cash dividend, coupled with the imminent issuance of the 13.53 percent bonus shares, solidifies Muktinath Bikas Bank’s standing as a highly capitalized and investor-friendly financial institution.

For More: Muktinath Bank Dividend Deposit