Despite Rs 58.57 million Reserve, no dividends for Corporate Development Bank's shareholders

ShareSansar, June 25

For Corporate Development Bank’s shareholders, the wait for dividends is getting longer.

In its announcement for this year’s AGM, published on June 25, the bank has made no mention of dividends for its shareholders, once again.

Last year, too, CDB could not offer the 30 percent dividends it had announced prior to its AGM after Nepal Rastra Bank cancelled the decision. In June 2012, the bank had initiated a merger talks with Social Development Bank and the NRB had advised CDB to announce dividends after the merger.

However, the merger talks ended after Social Development Bank pulled out of the discussions and the bank is now in the advanced stage of merger with Global IME Bank.    

An official with CDB said that the bank decided to withhold dividends this year as well because of ongoing merger talks with other financial institutions. The official cited merger talks also for the reason why it has halted trading of its shares at NEPSE.  

The official, however, refused to disclose the names of financial institutions it is in talks with.

In its financial statement for the third quarter of FY 2069/70, CDB has posted a net profit of Rs 10.3 million. The bank’s paid up capital stands at Rs 20 crore and reserve at Rs 58.57 crore.   

The fifth AGM of CDB will be held on July 15, 2013 (Asar 31, 2070) at Ghantaghar in Birgunj of Parsa district.

FOR AGM NOTICE: CLICK HERE

FOR BANK'S THIRD QUARTER REPORT: CLICK HERE