17th October 2025, Kathmandu
In a significant announcement that underscores its unwavering commitment to shareholder returns and robust financial health, Standard Chartered Bank Limited (SCB) has declared a substantial 19% cash dividend for its investors.
Standard Chartered Announces Cash Dividend
The decision, which reflects the bank’s superior performance during the previous fiscal year, was formalized during a Board of Directors meeting held on 31 Ashwin 2082 (Friday). This proposed cash payout, inclusive of applicable taxes, is poised to inject positive momentum into the capital market and cement SCB’s position as a premier, high-performing commercial bank in Nepal.
The announcement is particularly noteworthy as it signals the successful culmination of the bank’s operational and strategic efforts in a potentially challenging economic landscape. The dividend, calculated on the bank’s paid-up capital, demonstrates the strong liquidity and capital adequacy ratios maintained by SCB, allowing it to distribute a generous portion of its profits directly to its shareholders. The board’s prompt decision to recommend the cash dividend immediately following the fiscal year-end review is a powerful demonstration of transparent governance and confidence in the bank’s underlying asset quality.
Decoding the 19% Cash Dividend and Financial Strength
The 19% cash dividend is not merely a number; it is a tangible reflection of the bank’s exceptional profitability over the last operating cycle, which concluded mid-July 2082. Based on the bank’s official records, SCB operates with a substantial paid-up capital of approximately Rs. 10.04 billion. A 19% cash dividend calculated on this base represents a massive total payout in cash terms, directly benefiting the bank’s wide base of investors.
This distribution is solidly backed by the bank’s strong financial indicators. For the fiscal year ending in mid-2082 (FY 2081/82), Standard Chartered Bank registered an impressive Net Profit of over Rs. 3.03 billion. Such a strong profit figure is a prerequisite for sustaining a high dividend rate. Furthermore, the bank’s Earnings Per Share (EPS) for the same period stood at a robust Rs. 30.17, a figure that typically ranks among the highest in the Nepali commercial banking sector. The consistent generation of such profits, even as the regulatory environment emphasizes core capital management, highlights SCB’s operational excellence, efficient risk management, and strategic focus on high-yield and low-risk segments. The current dividend is a deliberate strategy to offer immediate, tangible returns to investors who seek liquidity and consistent income from their investments, often favoring a direct cash distribution over stock dividends.
Shareholder Rewards, Consistency, and Market Perception
Standard Chartered Bank Nepal Limited holds a unique place in the Nepalese banking system as the only international bank currently operating in the country. Its ownership structure features a majority stake held by the Standard Chartered Group, with a significant portion, nearly 30%, owned by the Nepalese public. The announcement of a strong, purely cash dividend directly addresses the expectations of this diverse investor base.
This 19% cash dividend reinforces a tradition of strong returns. Historically, SCB has maintained a consistent and attractive dividend policy. For instance, in a recent previous fiscal year, the bank had proposed a cumulative dividend of 25.5%, combining both cash and bonus shares. The choice to propose a 19% pure cash dividend for the current cycle is often interpreted by financial analysts and the market as a positive signal of confidence in the bank’s long-term growth and its superior asset quality, which allows for substantial cash distribution without necessarily requiring capital retention through bonus shares.
For the capital market, this announcement is a significant driver of sentiment. High-performing stocks like SCB, which consistently deliver solid cash dividends, are often considered “blue chip” investments. The prospect of a forthcoming 19% cash payment typically leads to increased demand and positive valuation adjustments for the bank’s shares on the Nepal Stock Exchange (NEPSE). It reassures the investment community about the bank’s profitability and its capability to convert profits into tangible shareholder wealth.
Navigating Regulatory Milestones: NRB and AGM Approval
While the Board of Directors’ decision marks a crucial internal milestone, the distribution of the 19% cash dividend is contingent upon two final, mandatory levels of approval, which ensure regulatory compliance and shareholder democracy.
First, the proposed dividend has already secured in-principle approval from Nepal Rastra Bank (NRB), the central banking and monetary authority. This preliminary approval is a mandatory requirement for any dividend declaration by commercial banks in Nepal. It confirms that the proposed payout meets all regulatory requirements concerning capital adequacy, profit utilization, and general financial stability. This early-stage approval significantly de-risks the dividend process, making the final payment highly probable.
Second, the proposal must be formally ratified by the shareholders at the bank’s upcoming Annual General Meeting (AGM). This meeting, which is expected to be the 39th AGM based on historical context, provides shareholders with the platform to vote on the bank’s financial reports and the dividend recommendation. Once the shareholders approve the motion, the bank is fully authorized to proceed with the payment. Investors who wish to be eligible for this 19% cash dividend must ensure they hold the bank’s shares before the yet-to-be-announced Book Closure Date.
In conclusion, the announcement of a 19% cash dividend by Standard Chartered Bank Limited is a clear reflection of its successful financial management and its dedication to consistently rewarding shareholders. It reinforces the bank’s status as a leader in the Nepali financial sector, demonstrating superior profitability and robust compliance with regulatory standards. This substantial cash payout is set to benefit thousands of investors, solidifying the bank’s reputation for financial stability and excellence.