Nepal SBI Merchant Banking AGM Concludes, Approves Significant Cash Dividend
Nepal SBI Merchant Banking
13th October 2025, Kathmandu
Nepal SBI Merchant Banking Limited successfully held its Tenth Annual General Meeting (AGM) today (Monday).
Nepal SBI Merchant Banking
The crucial gathering, conducted at the bank’s head office in Kamaladi, Kathmandu, marked a major milestone for the financial institution.
Key decisions were ratified, paving the way for the company’s financial direction. The Nepal SBI Merchant Banking AGM formally passed the Board of Directors’ report and the annual financial statements for the fiscal year 2081/82.
Ratification of Financial Statements
The General Assembly meticulously reviewed and approved the company’s comprehensive financial reports. This included the balance sheet as of Ashadh end 2082 (mid-July 2025). They also ratified the profit and loss accounts for the entire Fiscal Year 2081/82.
The approval process covered all related schedules and annexures pertaining to the annual financial statements. This rigorous oversight ensures transparency and robust financial governance for the bank and its stakeholders.
Approval of 25% Cash Dividend
A highlight of the Tenth AGM was the unanimous approval of a significant financial benefit for shareholders. The meeting passed a proposal to distribute a cash dividend equivalent to 25 percent of the company’s paid-up capital.
This substantial dividend amounts to a total of Rs 5 crore, which includes the applicable tax on the cash payout.
Such a generous distribution reflects the company’s strong financial performance and commitment to rewarding its investors. This action demonstrates sound capital management by the institution.
Focus on Strong Governance and Audit
Maintaining high standards of financial integrity remains a core commitment for the company.
The Nepal SBI Merchant Banking AGM addressed the critical need for independent auditing. Shareholders voted to appoint M/s A.P. & Associates, Chartered Accountants, as the official auditors for the fiscal year 2082/83.
Furthermore, the meeting efficiently determined the remuneration for the newly appointed audit firm.
This step ensures that the company’s accounts and operations will undergo thorough scrutiny, reinforcing investor confidence and adherence to regulatory standards.
The Role of Merchant Banking in Nepal’s Digital Economy
Merchant banking institutions play a pivotal role in strengthening the nation’s capital markets. Nepal SBI Merchant Banking, with its successful AGM and robust financial decisions, contributes significantly to this ecosystem.
In an era of digital finance and increasing reliance on online investment platforms, the stability and growth demonstrated by such financial entities are essential.
Their activities, including managing Initial Public Offerings (IPOs) and providing portfolio management services, are heavily influenced by ICT.
The efficient dissemination of information following the Nepal SBI Merchant Banking AGM is itself reliant on digital infrastructure.
Implications for the Capital Market
The distribution of a high cash dividend by a prominent merchant bank often sends a positive signal to the broader capital market. It indicates liquidity and strong underlying profitability in the financial sector.
This can potentially boost investor sentiment and encourage greater participation in the market.
As Nepal continues to advance its digital economy, the role of merchant banks in facilitating investment through technology becomes even more critical.
The AGM’s positive outcomes solidify the company’s position as a reliable player in Nepal’s financial landscape. Future strategic planning will undoubtedly incorporate further technological enhancements to optimize service delivery and operational efficiency.
For more: Nepal SBI Merchant Banking
