Central Bank Approves 6.3158% Dividend of Progressive Finance (PROFL)

Nepal Rastra Bank has approved the dividend of Progressive Finance Limited (PROFL).

The company had previously proposed a 7.3684% dividend for the fiscal year 2077/78. This was the company's first-ever dividend proposal. The 473rd meeting of the board of directors held on Poush 01 had decided to distribute the dividend on the paid-up capital of Rs. 80.01 crores. 7% bonus shares worth slightly over Rs 5.6 crores and 0.3684% cash dividend (including tax) worth Rs 29.47 lakhs were proposed.

However, the company revised its dividend proposal. 6% bonus shares and 0.3158% cash dividend were then proposed on the paid-up capital of Rs. 80.01 crores. Thus, the bonus shares are worth Rs. 4,80,06,000 and the cash dividend is worth Rs. 25,26,631. Thus, the new dividend proposal amounts to a total of 6.3158% on the paid-up capital.

The revision is a result of a change in the tax provision, which then impacted the financial reports and also reduced the company's retained earnings.

The AGM of the company was also postponed because of the unfavorable condition created by Covid-19 and technical error in its financial reports due to changes in the tax provision.

As of writing, PROFL has an LTP of Rs. 367.