6% cash dividend from Everest & NABIL; Will the NRB stand up against big banks?

Everest Bank Limited (EBL) announces 30% stock dividend and 6.58% cash dividend for its shareholders from the profit earned in the last fiscal year. Nabil Bank Limited (NABIL) has decided to distribute 30 percent bonus share and 6.842 percent cash dividend for to its shareholders from the net profit it earned in the last fiscal year 2071/72. The decision is subjected to approval from Nepal Rastra Bank (NRB) and the respective Bank’s upcoming Annual General Meeting (AGM). The NRB has forced Triveni Bikas Bank limited to amend  the dividend to 10.08% stock dividend(Bonus Shares), which was announced previously as 10% Stock Dividend and 0.53% cash dividend(for tax purpose). Likewise, the NRB directed Nepal Investment Bank Limited (NIBL) to convert its proposed 15 % cash dividend to bonus.  According to the officials at NIBL, the NIBL had proposed 18 % bonus share and 15 % cash dividend on its proposal to the NRB. The NRB directed NIBL to converts its 15% cash dividend to bonus share. Thus, the current bonus share stands at 33 % instead of 18 % bonus and 15% cash dividend. This shows the high handedness of the central bank to the Bank and Financial Institutions (BFI) that purpose cash dividend. This has sent clear message to BFIs to put aside cash dividend plan for at least this year. Trilochan Pangeni, Spokesperson for the NRB said, " The NRB looks at the fundamentals of a BFI while approving its dividend whether it be bonus or cash. If the central bank feels that the bank is able to reach the required paid up capital with a ease, then we may approve cash dividend. EBL and NABIL have strong fundamentals so their cash dividend might get approved from the NRB." Now, it would to interesting to see if the central bank would be able to keep up same policy when it comes to the big banks like EBL & NABIL.