Agriculture Dev. Bank declares 15% bonus & 50% right share; Paid up to reach Rs 5.90 arba, needs Rs 2.10 arba more

Agriculture Development Bank Limited (ADBL) has announced 15 percent bonus share and 0.79 percent cash dividend tax purpose to its shareholders from the net profit it earned in the last fiscal year 2071/72. The bank has also announced 2:1 (50%) right share to its existing shareholders

The BOD meeting held on today (Falgun 28, 2072) has proposed 15 percent bonus share and 2:1 right share to its shareholders.

However, the decision is subject to approval from Nepal Rastra Bank and the Bank’s upcoming Annual General Meeting (AGM).

Through circular issued on 8th October 2015, NRB has clearly instructed that only equity shares may be used for the purpose of increment of paid up capital. This means the BFIs cannot use any kind of preference shares to reach their paid up capital.

ADBL has 6% non cumulative irredeemable preference share worth Rs 6.44 arba. So, as per the directive ADBL  is short of Rs 4.58 arba to reach the capital of Rs 8 arba.

The current paid up capital of ADBL is Rs 3.42 arba. After 15% bonus share the paid up will reach Rs 3.93 arba. The 50% right share will increase its paid up capital to Rs 5.90 arba. So, ADBL will still need about Rs 2.10 arba to reach paid up of Rs 8 arba.

ADBL has earned net profit of Rs 38.75 crore in the second quarter of the fiscal year 2072/73.

ADBL had distributed 7% bonus share & 8% cash dividend to its shareholders from the profit it made in 2070/71 FY while it  had distributed 31.58% cash dividend from the profit it made in 2069/70 FY.