16th December 2024, Kathmandu
NMB Bank Limited has scheduled the 29th Annual General Meeting (AGM) for January 9, 2025. This decision was made during the 479th meeting of the bank’s Board of Directors held on December 13, 2024.
NMB Bank’s 29th AGM Key Decisions
The bank has announced several major agendas for NMB Bank’s 29th AGM, including the issuance of irredeemable preference shares worth NPR 3 billion.
Key Highlights of the AGM Agenda
No Dividend Distribution This Year
The Board has decided not to distribute any cash dividends or bonus shares for the fiscal year 2023/24. Instead, the meeting will focus on approving the financial statements of the previous fiscal year and appointing auditors for the current fiscal year, along with determining their remuneration.
Issuance of NPR 3 Billion Preference Shares
One of the significant proposals to be discussed is the issuance of irredeemable non-cumulative preference shares. These shares will carry a face value of NPR 100 each, amounting to NPR 3 billion in total.
The proposed preference shares, with an annual return of 8.25%, will be classified as “NMB 8.25% Irredeemable Non-Cumulative Preference Shares.”
This move is aimed at strengthening the bank’s capital base and increasing its paid-up capital. After issuing these shares, the bank’s paid-up capital will rise from NPR 18.36 billion to NPR 21.36 billion.
Authorized Capital to Increase by NPR 5 Billion
The AGM will also discuss raising the bank’s authorized capital from NPR 20 billion to NPR 25 billion. This capital expansion is expected to support the bank’s long-term growth plans.
Empowering the Board
The proposal to grant authority to the Board of Directors for executing these capital expansion plans and other related matters will also be tabled during the meeting.
Book Closure Details
For the purpose of the AGM, the bank has announced a book closure date of December 26. Shareholders who hold shares until December 24, will be eligible to participate in the AGM.
No Dividends for FY 2023/24
The bank’s Board of Directors has decided not to distribute any dividends—neither cash nor bonus shares—for the fiscal year 2023/24. This decision reflects the bank’s focus on consolidating its capital position rather than providing immediate returns to its shareholders.
Implications of the Proposed Preference Shares
The issuance of NPR 3 billion in preference shares is a strategic move by NMB Bank to enhance its financial stability and strengthen its Tier 1 capital. These shares, being non-redeemable, will provide the bank with a stable source of funding without the obligation to repay the principal amount.
Upon approval, the move will also enable the bank to meet regulatory capital requirements and prepare for future expansion.
With these major decisions, NMB Bank is positioning itself for sustainable growth while reinforcing its capital structure. Shareholders are anticipated to discuss and decide on these critical matters during the AGM.
For more: NMB Bank’s 29th AGM Key Decisions
