ADBL starts distributing 31.58% percent dividend

ShareSansar, June 4:

Agricultural Development Bank Limited (ADBL) has started distributing 31.58 percent cash dividend it had approved for the profit it posted in the last fiscal year 2069/70 from today.

The seventh Annual General Meeting of the state-run bank held in Kathmandu on May 23 had endorsed the dividend proposed by the 482nd BoD meeting of the bank with 241 branches and extension counters had offered the dividend in February.

Since the bank has more than 2 lakh shareholders, it has stated that the dividend can be collected from the office of Ace Capital Limited at Lal Colony, Lal Durbar as well as the office of Ace Development Bank Limited at Narayan Chaur in Naxal from from 10:00 AM to 3:00 PM from Sunday to Thursday and from 10:00 AM to 1:00 PM on Fridays.

This is the highest cash dividend pledged by any state-run bank and second highest by commercial bank in the country for the last fiscal year, following 50 percent cash dividend offered by Everest Bank Limited.

It may be noted that ADBL had announced book closure on May, which means that only those who already held the scrip by May 1 will be entiled to the cash dividend.

Addressing the AGM last month, Chairman of ADBL Pramod Kumar Karki said that the bank has proved that even a state-own bank can make good profit and reward its shareholders accordingly.

Presenting the annual financial report, Karki further informed that the total operating income of the bank had increased by 12.22 percent in the last fiscal year as compared to the previous one, and that the net profit, too, had surged by an impressive 24.46 percent.

ADBL officials said that the bank aims to post even better income for the current fiscal year.

It may be noted that ADBL remains the most undervalued stock in the market despite the fact that it is the highest income and profit earner among all the commercial banks in the country, and its net profit is steadily increasing over the recent years.

The ADBL scrip was last traded for just Rs 465 yesterday.

According to those keeping a close tab on the bank say that the price defies logic, and believe that the general suspicion regarding the state-own banks could be the major factor behind the undervalue of the scrip.