15th January 2025, kathmandu
NIC Asia Bank has decided not to distribute dividends to its shareholders for the fiscal year 2023/24. This move comes as a surprise to many, as shareholders were expecting returns on their investments.
Nepal Banks Skip Dividend Payouts
Board Decision
On 13 January, the bank’s board of directors held a meeting and decided to withhold dividends from the profits of the past year. No specific reasons were provided for this decision. The bank has since submitted its financial reports to Nepal Rastra Bank for final approval.
Impact on Shareholders
Shareholders had hoped for dividends from the bank’s profits, but this year they will receive nothing. The decision has raised questions about the bank’s financial strategy and plans.
Similar Move by Nepal Bank Limited
In a related move, Nepal Bank Limited also announced that it would not distribute any dividends to shareholders for the fiscal year. Both banks have sent their financial statements to Nepal Rastra Bank for review.
Future Prospects
The decision to withhold dividends suggests that the banks may be focusing on strengthening their capital base or addressing other financial priorities. This move could impact shareholder confidence, but it may also indicate a strategic shift toward long-term growth.
With both NIC Asia Bank and Nepal Bank Limited taking similar actions, the banking community will be watching closely to see how these decisions affect their operations in the months ahead.
For more: Nepal Banks Skip Dividend Payouts